Insolvency
Posted by Matthew on May 20, 2008 at 20:08:28:
When proving insolvency (total liabilities exceed the fair market value of assets)does this apply to rental property?
Example:
I owe $57,000 for a rental property. Very little equity, if any. So, if I let it go into foreclosure and I am only worth about $20,000 total, then I am insolvent, correct?
Assuming that the bank foregives me of the debt of the rental property (under the LLC) would I owe any taxes or would the cancelation of debt act come in to play and I would owe nothing?
Thanks!
Follow Ups:
- foreclosure effects on rental property - papagin 12:38:14 05/26/08
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- Re: foreclosure effects on rental property (url) - Mary Supinger 01:26:20 06/08/08
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- Re: Insolvency - NJD 06:14:41 05/21/08
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- Re: Insolvency - Steele in Minnesota 20:33:35 05/20/08
(2)
- Re: Insolvency - Matthew 04:34:30 05/21/08
(1)
- Re: Insolvency - steele in minnesota 08:21:13 05/21/08
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