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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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Paid 630k, have loan of 461k, have agreed to foreclosure judgment, no

Customer Question

paid 630k, have loan of 461k, have agreed to foreclosure judgment, no deficiency judgement. Placed into "service" at 550k (investment property), have depreciated 120K. Property went to foreclosure auction, bank "won" at 175k (property is well worth 300k) Realize I will get a 1099-C for the difference of the loan and the auction price - between 1231 and qualified real property indebtedness do i have a tax liability?
Submitted: 2 years ago.
Category: Tax
Customer: replied 2 years ago.
no bankruptcy, no insolventcy
Expert:  PDtax replied 2 years ago.
Welcome to the site. I'mCustomer and will be helping you today.
Can you provide some backup as to the reason for the rental property basis < purchase - was this your principal residence ever, or was $80K the land basis?