DianeW
Expert Alumni

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He can deduct all the payments he made in 2016, by both cash and credit card.  Amounts paid on a credit card are considered paid on the day charged.  And if you have a true debtor, creditor relationship he can deduct the money he pays to you as it's being paid.  

A note should be in place and notarized for proof and receipts written for his payments to you. 

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