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Capital Gains Question
Catherine, there is an answer to avoiding the capital gain with a
property encumbered for more than its basis in the Morgan King
"Discharging Taxes in Bankruptcy" book (available form Kings Press).
It's called a "slow Chapter 7" and involves filing a Chapter 11 to
capture the big capital gain in the Chapter 11 estate, and then
converting to a Chapter 7. I used it once in 1998, and it worked very
smoothly. Get his book for the whole procedure.
Gerald McNally
McNally Bus Card Smaller
Gerald McNally
McNally & Associates, P.C.
517 East Wilson Ave., Ste 104
Glendale, CA 91206
818.507.5100
Fax: 818.507.5001
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May be. Individuals can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned thehome and lived in the home for a minimum of two years. Those two years
do not need to be consecutive. In the 5 years prior to the sale of the
house, you need to have lived in the house for at least 24 months in
that 5-year period. In other words, the home must have been your
principal residence. You can use this 2-out-of-5 year rule to exclude your profits each time you sell or exchange your main home.
Paul Horn
Attorney at Law
Certified Public Accountant
850 E. Las Tunas Drive
San Gabriel, CA 91776
800-380-7076
________________________________
To: cdcbaa blog
Sent: Friday, January 13, 2012 9:33 AM
Subject: [cdcbaa] Capital Gains Question
PC has rental property owes approx 1M, FMV 800,000. Purchased property at 500,000, deducted costs and depreciation on tax returns over the years. Question: Deficiency will be forgiven in BK if Short Sale or Foreclosure, however, will Debtor be liable for capital gains? Debtor still has property.
Law Office of Catherine Christiansen
The post was migrated from Yahoo.
PC has rental property owes approx 1M, FMV 800,000. Purchased property at 500,000, deducted costs and depreciation on tax returns over the years.sure, however, will Debtor be liable for capital gains? Debtor still has property.
Law Office of Catherine Christiansen
The post was migrated from Yahoo.