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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] The tax is on your gain only (profit or debt relief) [NT] Posted by Rick, the Probate Guy on September 30, 2006 at 4:16 PM In Reply to: Brooklyn Girl Worried about Capitol Gains on Foreclosure & DIL posted by Madonna Maka on September 30, 2006 at 10:15 AM : I live in Brooklyn NY. Like an idiot, I regretfully bought a home as an investment to flip in Florida. I tried everything to sell this home. I listed with a reputable real estate company. I was told no buyers. I tried selling at lower than what I owe the bank as for sale by owner. I read blogs about another person in same situation about a Florida home. In the replies it implies that if I do a DIL or foreclosure, that I'll have to pay the IRS capitol gains taxes on the $305,000 I owe the bank if I do the DIL or a foreclosure. Is that true? I can't afford paying taxes on $305,000. I'm ashamed and scared. I can't afford this home anymore. I borrowed money from my parents to make the last 5 months payments to the bank because I didn't flip it like planned. They can't give me any more money or a loan because they are retired on a fixed income. Right now, I have way more bills than earnings. Making matters worse, I had to take a pay cut due to a major reorganization at my job. Is that true about having to pay capitol gains taxes to the IRS if the bank OKs a DIL or foreclosure? I may have to move in with my parents which is totally embarrassing. Please share your thoughts. Madonna Follow Ups: If DIL or 4close "less" than I owe, it's not a Cap Gain? Re: The tax is on your gain only (profit or debt relief) [NT] Madonna Maka 4:39 PM, 09/30/06 (8) Start by determining your basis cost Rick, The Cranky Probate Guy (CA) 5:50 PM, 09/30/06 (6) Re: Start by determining your basis cost Bill H 6:54 PM, 09/30/06 (5) Thanks Rick, Bill & Greg!!! 1 final question please. You Guys Rock! Re: Start by determining your basis cost Madonna Maka 11:31 PM, 09/30/06 (4) I can't afford to pay Cap Gains Tax & pay Deficiency...What is the benefit of a Short Sale? Re: Thanks Rick, Bill & Greg!!! 1 final question please. You Guys Rock! Re: Start by determining your basis cost Madonna Maka 9:55 AM, 10/01/06 (0) One final note Greg 8:19 AM, 10/01/06 (2) Oooops! Re: One final note Madonna Maka 10:04 AM, 10/01/06 (1) Short Sale Greg 7:21 PM, 10/01/06 (0) Re: If DIL or 4close "less" than I owe, it's not a Cap Gain? Re: The tax is on your gain only (profit or debt relief) [NT] Greg 5:29 PM, 09/30/06 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I live in Brooklyn NY. Like an idiot, I regretfully bought a home as an investment to flip in Florida. I tried everything to sell this home. I listed with a reputable real estate company. I was told no buyers. I tried selling at lower than what I owe the bank as for sale by owner. I read blogs about another person in same situation about a Florida home. In the replies it implies that if I do a DIL or foreclosure, that I'll have to pay the IRS capitol gains taxes on the $305,000 I owe the bank if I do the DIL or a foreclosure. Is that true? I can't afford paying taxes on $305,000. I'm ashamed and scared. I can't afford this home anymore. I borrowed money from my parents to make the last 5 months payments to the bank because I didn't flip it like planned. They can't give me any more money or a loan because they are retired on a fixed income. Right now, I have way more bills than earnings. Making matters worse, I had to take a pay cut due to a major reorganization at my job. Is that true about having to pay capitol gains taxes to the IRS if the bank OKs a DIL or foreclosure? I may have to move in with my parents which is totally embarrassing. Please share your thoughts. Madonna Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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