Figuring Amount Realized

The amount realized represents the total selling price, and includes:

  • Cash
  • The fair market value of property received in addition to the cash received
  • Any of your liabilities that the buyer agrees to pay or assume.

Buyer's Promissory Note

The buyer's promissory note is included in the selling price at fair market value. This is usually the discounted amount that a bank or other party will pay for the note.


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