From: Marek Williams 
Newsgroups: misc.invest.real-estate
Subject: Re: short sales and taxes
Date: Fri, 22 Aug 2003 03:34:14 GMT

On Sat, 16 Aug 2003 16:50:07 GMT, "director38"
 dijo:

>He would rather lose the house at auction than sell to me and pay income
>tax.

Not sure if this is feasible, but if you took title subject to the
existing loan at its current balance (no assumption or personal
obligation), and then the bank forgave part of the debt to you, the
seller will not have the tax liability on the forgiven debt. *You*
will, however. But if the deal is sweet enough for you it might be an
alternative. 

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