Promissory notes and mortgage notes have two primary values-cost value and Fair Market Value. The cost value is what you paid, or what you invested; Fair Market Value is what the note is worth today if it were sold. If $10,000.00 was invested in a note originally, and today its Fair Market Value is zero ($0.00), there may be a $10,000.00 tax deduction available, depending on the specific facts.
