4 ms·
How does it work if the loan defaults and those assets were used as collateral?
by jagged-chisel 3mo ago
How does it work if the loan defaults and those assets were used as collateral?
- Schiendelman 3mo agoI'm not a tax lawyer, but I think if you default on a loan, the collateral changes hands, which is a taxable event for you as if you sold the asset, at whatever value the unpaid portion of the loan was. So you pay tax.