Consequences of Tax of a Deed in Lieu of foreclosure

Deed in lieu of foreclosure on a rental real estate investment property is the process in which you offer the deed for your property back to the lender in exchange of getting the rest of the mortgage debt forgiven. This will save you from losing your home through foreclosure whereby the bank takes possession of the property and tries to sell it to recover the loss. Deed in lieu of foreclosure forgives the understanding debt. This eliminates your debt; it increases what you owe to the Internal Revenue Service. Please remember that Internal Revenue Service treats the forgiven debt as … Read the rest