Posted by John K Haslach, CPA on December 14, 2009 at 14:47:11:
You very well could have income. Ever hear of forgiveness of debt income? If the bank settles for less than what you owe, you may have phantom income.
How to use loss for taxes. - Posted by InGA
Posted by InGA on November 07, 2009 at 08:14:27:
I had two investment properties (residential lots) on my personal name and both had separate mortgage. I bought the properties in May 2005, and was paying mortgages until Sept 2008. I just settled with bank paying them $70,000 and dead to both properties. My total loss including down payments, mortgage, settlement, lawyer fees etc is about $200,000 My question is how can I best use this loss for tax purpose. My income from other sources this year will be about $200,000