Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
Is the office building in a corporation or in your personal name?
You will be defaulting on the office building and letting it go to foreclosure?
I think that I will have no choice in the default becausr of my 300k 2nd mtg
The income from the investment property is your personal income,
so you can use it for personal expenses,
I will never have enough equity to repay any of the 300k on the 2nd mortgage now
Once the building goes into foreclosure, and sold, then the rental income cannot be used for personal use,
personal expenses are then pre payment of principal on the residence a
When you file bankruptcy, you should only do so, when the office builiding is sold and the rental income is not a factor anymore,
so until the bank takes the building in the forclusure i can use the rental income to pay personal expenses? and those personal expenses can be prepayment of principal on my personal residence??
it is your income,
their is no law requiring you to pay the rent into the office building,
if it was a corporation, then the Court or a creditor, could state that
also my long term IRS capital gains will be about 70,000 will I be able to get that discharged from the IRS
in the bankruptcy
you have a $70,000 gain?
my cpa says that my basis would be based on the total debt which is 700,000 and my basis is about 150,000 so 15% of the difference would be my tax obligation if the building is forclosed.
Bankruptcy is an exclusion to the debt cancellation income that you would incur on this rental property.
If I sign up for unlimited questions with this site is that an additional 40.00 on top of the 30 I just paid? or is it just 40.00?
My understanding is you would pay for a monthly service plan, once and you can use the current payment, but customer service will deal with that,
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