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Mark Taylor
Mark Taylor, Certified Public Accountant
Category: Capital Gains and Losses
Satisfied Customers: 2044
Experience:  Certified Public Accountant
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I have a nyc taxi medallion that I bought for 38000 forty

Customer Question

I have a nyc taxi medallion that I bought for 38000 forty years ago.
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I now have a mortgage on it for 585000
JA: Is there anything else the Accountant should be aware of?
Customer: if I default on the loan or sell it at 585000 what will be my capital gain liability ?
Submitted: 9 months ago.
Category: Capital Gains and Losses
Expert:  Mark Taylor replied 9 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. If you default on the loan you would have cancellation of debt income. This would be treated as ordinary income unless an exclusion applied. If you sold the medallion for $585,000 you would have a capital gain on the difference between your basis and the sales price. Was the cost of the medallion amortized?

Customer: replied 9 months ago.
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Expert:  Mark Taylor replied 9 months ago.

What type of entity do you have?