Tax Repercussions if I Discharge Mortgage - Posted by Elizabeth (NJ)

Real Estate Investing
1

Posted by E.Eka on September 23, 2004 at 12:40:11:

There really isn’t issue with you, the discharger. The person receiving the discharge may have to pay tax on the discharged amount, unless they are insolvent. Go to the IRS’ website. www.irs.gov. I think it’s PUB 905. Not sure.

2

Tax Repercussions if I Discharge Mortgage - Posted by Elizabeth (NJ)

Posted by Elizabeth (NJ) on September 23, 2004 at 11:46:01:

I am buying a note from the bank for property I’m purchasing which I will discharge at closing when my buyer takes title. While the process is simple, I’m wondering if anyone has gone thru this and is aware of any significant negative tax consequences as result of discharging the mortgage? Obviously, I’m discharging the mortgage because I’m making money as result of selling the property.

Thanks.