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Investors & landlords
It would be more accurate to report this under investment income as the sale of an investment.
It is not self employment income, and your basis is not a self employment expense. It is a capital gain or loss transaction. The tax effect is the same either way, and the IRS should recognize that you reported the $20,000 on your return. Just remember that your basis in the investment is also reduced by $20,000.
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‎February 9, 2020
2:19 PM