Re: Forclose rental & own home, capital gain?
Posted by NJD on July 13, 2008 at 05:49:12:
In Reply to: Forclose rental & own home, capital gain?
Posted by Lyssa on July 13, 2008 at 02:52:14:
A capital gain is a profit that results from the sale or exchange of a capital asset; such as "stocks", "bonds", or "real estate" which exceeds the purchase price.
From a tax point of view, I would be less concerned about capital gains and more comcerned about ordinary income tax. In the case of short sales or foreclosure, forgiven mortgage debt is considered (by the IRS) to be ordinary income and taxed as such. There are exceptions which is why you should consult with an attorney, and a CPA.
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