Ask Question
8 November, 01:54

Change the facts in the preceeding problem by assuming that the $120,000 mortgage on Lyle's real estate is nonrecourse. Determine the tax consequence to Lyle if the mortgage holder forecloses on the real estate.

+1
Answers (1)
  1. 8 November, 02:18
    0
    Calculating the bad debt loss as follows:

    Mortgage - fair market value of

    property = $120,000 - $100,000

    $20,000

    Calculating the capital profit as follows:

    Fair market value of property - Adjusted basis = $100,000 - $75,000=

    $25,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Change the facts in the preceeding problem by assuming that the $120,000 mortgage on Lyle's real estate is nonrecourse. Determine the tax ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers