We sold several rental properties this year on a short sale. We were able to take an accelerated depreciation over the last ten years because of where the houses were located (Go-Zone). The lender has chosen to forgive the debt. I am trying to figure out what we will face in our tax situation at filing time next year. Example Property: Purchase Price $45,000 Sales Price $17,000 Accelerated Depreciation $25,000 Forgiven Debt $28,000 Any tax experts have an idea what the tax situation will look like? I would love any input!!! Thank you!!!!!
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