Discover a wealth of information and get your questions answered on IDNLearn.com. Ask your questions and get detailed, reliable answers from our community of experienced experts.
Claire's vacation cabin was secured by a nonrecourse mortgage. This year the bank foreclosed on the property. At the time of the foreclosure: the principal balance of the loan was $290,000; the cabin's fair market value was $250,000; and Claire's adjusted basis was $270,000. Claire received no money or other property as part of the transaction. Which of the following correctly describes the income, gain, or loss that Claire realized as a result of this foreclosure? A) Ordinary income of $40,000 and capital loss of $20,000. B) Capital loss of $20,000. C) Capital gain of $20,000. D) Capital gain of $40,000.
Sagot :
Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for visiting IDNLearn.com. We’re here to provide accurate and reliable answers, so visit us again soon.
