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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6392
Experience:  20 years of professional experience
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I am Upside down with 2 rental houses that were not originally

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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.



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Customer: replied 7 years ago.
Thanks for your time your answer was very swift and correct once again thank you for your time.