Jimmy has fallen on hard times recently. Last year he borrowed $271,000 and added an additional $95,500 of his own funds to purchase $366,500 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $247,900.
For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)
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The real estate is worth $210,500 and Jimmy has $48,400 in other assets but no other liabilities.
Amount includable