Legal Question in Tax Law in Massachusetts

statue of limitations on capital gains of real estate

I sold a house then bought a house for less money the irs said i owed them money the new house i bought i lived in about 1 year and it was repocessed this happened about 8 to 9 years ago do i still owe them money


Asked on 10/18/99, 1:39 pm

1 Answer from Attorneys
MYRON LEWIS MYRON LEWIS

Re: statue of limitations on capital gains of real estate

Cancellation of debt (i.e, your Mtg.) IS INCOME, per the Internal Rev. Code. However, there is an exception for Insolvency & Bktcy.IRC Sec. 108(a)(1)...See if you qualify under IRC Section 108,and tell the IRS you qualify ASAP once you find that out!! Good luck!!!

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Answered on 10/20/99, 12:38 pm


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