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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] 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] Posted by Madonna Maka on September 30, 2006 at 4:39 PM In Reply to: 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 Hi Rick, than you for responding. I just want to make sure I understand your email. If I DIL or floreclose at less than what I owe, there is NO Capitol Gains? If that is true, you've made my day Rick because my parents and I have been worried sick becuase of what I read about in that other guy's post. He was told that the IRS claims DILs and foreclosures are considered earnings and treated as Capitol gains. Thank you for clearing this up for us. Madonna : : 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: 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: : Hi Rick, than you for responding. I just want to make sure I understand your email. If I DIL or floreclose at less than what I owe, there is NO Capitol Gains? If that is true, you've made my day Rick because my parents and I have been worried sick becuase of what I read about in that other guy's post. He was told that the IRS claims DILs and foreclosures are considered earnings and treated as Capitol gains. Thank you for clearing this up for us. Madonna : : 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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