Fran and Tom purchase a home in 2011 for $1,500,000. To finance the purchase, they borrow $1,450,000
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Fran and Tom purchase a home in 2011 for $1,500,000. To finance the purchase, they borrow $1,450,000 from Buttars Mortgage Brokers. In 2012 they borrow an additional $100,000 from Buttars, secured by the residence, to add a game room. They become unemployed in 2014 and are unable to make the payments on the mortgages. In 2015, they sell the home for $1,200,000. The balances on the debts are $1,480,000 and $95,000, respectively. Buttars agrees to cancel the remaining debt on the mortgage. How much income do Tom and Fran have from Buttars cancellation of the remaining debt on their home?
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Related Book For
Concepts In Federal Taxation 2018
ISBN: 9781337386074
25th Edition
Authors: Kevin E. Murphy, Mark Higgins
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