My husband and I (actually our LLC) bought and rehabbed a mobile home for my in-laws following a hurricane so they would have a place to live. They of course wanted to pay us so we sold it to them at fair market value (34k) although it was a loss to us (basis 44k) due to extremely high prices for materials and the home itself right after a disaster. But we did not care because they needed a place to live. It was officially sold in Jan 2022. Unexpectedly my father in law passed away 6 months later leaving my mother in law very tight on money. There is no way she will be able to pay us the remainder of what is owed (they paid 20k as a downpayment with plan to make a large payment yearly for a couple years). We are now looking at cancelling the promissory note (disposing the obligation) and repossessing the home (allowed per the contract). We do not plan to move her out of course…but what are our options with regards to not getting hit big time with taxes (ie gains on a repossession??). Boy did this get complicated quick for us. Thanks so much…you guys are always creative with how you look at strategies and since we havent pulled the trigger yet I was thinking maybe there is an outside the box suggestion.