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If the bank sells the house for less than the mortgage, the IRS will consider the difference income.
by woofyman 6y ago
If the bank sells the house for less than the mortgage, the IRS will consider the difference income.
- gamblor956 6y agoKnown as "cancellation of indebtedness income." https://www.irs.gov/newsroom/home-foreclosure-and-debt-cancellation https://www.irs.gov/newsroom/home-foreclosure-and-debt-cance... Foreclosure of non-recourse loans does not trigger cancellation of indebtedness income. Instead, it could trigger capital gains.