Thanks a lot. I have Home & Business TT. What about my lost cash investment of 150K? Should i file it in income part and then will the TT relate it with 1099-C? Will it compute my over all losses on this investment as 150K-94.5K=55.5K? I do not still understand the nature of my responsibility of paying any taxes for the all amounts that i lost. I only deducted mortgage interest that i paid annually.
I do not understand The Seller's/Lender's overall benefits: It got 300K cash for the property upon closing plus 13 years x 9K = 117 K of interest paid by us plus returned property evaluated as FMV of 189K + 11K (cash) but we as partners are responsible for 189K taxwise, not to mention property tax plus maintenance all these years that we paid. Where is our income? What about IRS publication 4681 saying' the ordinary income from the cancellation of debt over the FMV of the property must be included in your gross income". I assume we are responsible for only 11K but we paid it back to the Lender. Appreciate your comments. Thanks.
