Sam aowned a condo on the beach which he used as his occasional sanctuary from hisbusy life. He purchased the condo for $300,000 in 2020 from Beach Front Bargain Hunt with aloan he secured from a local credit union. The condo's value dropped to $150,000 in 2021 and isnow worth $220,000. Sam, wanted to "walk away from the property" because he didn't want tokeep investing in a property that was losing value. When the mortgage was $280,000, Sam agreedto the credit union's offer to adjust the mortgage amount to $220,000 to keep his ownership.
 
Discuss the tax or potential income tax consequences for this issue.

Answer rating: 100% (QA)

Sams situation involves several potential tax and financial consequences Heres a discussion of some ... View the full answer