Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
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?
What type of entity do you have?