How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Maverick Your Own Question
Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6384
Experience:  20 years of professional experience
16823287
Type Your Bankruptcy Law Question Here...
Maverick is online now
A new question is answered every 9 seconds

I am Upside down with 2 rental houses that were not originally

This answer was rated:

I am Upside down with 2 rental houses that were not originally investments it's a long story but my question is if we short sell them would the loss from the sale off set the income tax that would be due from the difference between the purchase price and the sales price. because there almost $160,000 upside down each.

The amount you lose on the sale would be treated as a capital loss. The amount that your lender forgives in debt, if any, as a result of the short sale would be treated as "income" and thus would be a capital gain. The two would then offset each other.

 

 

Please click "Accept" so that I can get credit for this answer. We can continue our conversation after that at no additional charge. Thank you.

 

This information is provided so you may better discuss legal issues with your attorney. Consult a local attorney for legal advice before acting. You may be able to find an attorney in your area to further assist you at http://www.martindale.com/ or at http://www.lawyers.com/ .

 

Maverick and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
Thanks for your time your answer was very swift and correct once again thank you for your time.

Michael
Sure.