Real estate investors may take advantage of the following tax benefits:
Losses on real estate transactions may be subject to the following disadvantages:
A foreclosure or repossession is treated as a sale on which you realize gain or loss. In addition, if you are personally liable on the loan and the amount of debt cancelled in the foreclosure exceeds the fair market value of the transferred property, you will owe tax on cancellation of debt income unless an exception is available (31.9).
31.2 Sales of Subdivided Land—Dealer or Investor?
31.3 Exchanging Real Estate Without Tax
31.4 Timing Your Real Property Sales
31.8 Special Tax Credits for Real Estate Investments
31.9 Foreclosures, Repossessions, Short Sales, and Voluntary Conveyances to Creditors
31.10 Restructuring Mortgage Debt
31.12 Seller’s Repossession After Buyer’s Default on Mortgage
31.13 Foreclosure on Mortgages Other Than Purchase Money
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