Brandon W. asked
A client has a house he has lived in since 2002, with a first mortgage of $590,000 and a second mortgage of $209,000 that was forgiven on October 30, 2015. The bank is foreclosing on the house, and the house is valued at $700,000. Is the cancellation of the second mortgage debt tax-free since it has been his primary residence? Is the house considered an asset as of October 30, and how does this affect his tax situation if the first mortgage is successfully foreclosed?
May 3rd, 2023
Nicole W. answered
The cancellation of the second mortgage debt is tax-free because the house has been the client's pri...
May 3rd, 2023
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