Insolvency and Avoiding Tax on an Investment Property

If you can prove insolvency at the point immediately before the short sale of your investment property you will have NO tax to pay. Insolvency is when your total debts exceed your total assets. 401ks and IRAs are assets even though they can not be touched either by the bank or the IRS. All mortgages are debts.

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Posted in Banking Bankruptcy Foreclosure Real estate Short Sale Tax by admin No Comments Yet