How can an investor evade a mortgage over basis problem when selling or exchanging?

I have a client who refinanced recently and now needs to dispose of the property. I and his accountant have informed him that he would be facing a mortgage over basis problem that is subject to taxation. Is there any way that this investor can delay or defer this taxable event?
In Selling Property - Asked by Charles M. - Aug 14, 2012
Report Abuse
Answer this Question


Charles C.
Reno, NV

So many variables...negotiate a short sale, selling subject to existing financing at very Buyer-favorable terms (to the extent this pencils after tax, obviously). Recourse/non-recourse loan (in what state, what kind of property). What might the lender do for your client?
Maybe it makes sense to try and stick it out until the best known tax year; if this is a distress situation there are many constantly-changing legal considerations.

Aug 15, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question