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Good afternoon. You do have a tax
. But, you will not have any gain on the sale. Rather, this will generate a long term capital loss for you. Pursuant to IRS Tax Topic 409 (http://www.irs.gov/taxtopics/tc409.html):
Capital gains and deductible capital losses are reported on Form 1040, Schedule D (PDF), Capital Gains and Losses, and on Form 8949 (PDF), Sales and other Dispositions of Capital Assets. If your capital losses exceed your capital gains, the amount of the excess loss that can be claimed is the lesser of $3,000, ($1,500 if you are married filing separately) or your total net loss as shown on line 16 of the Form 1040, Schedule D (PDF).
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