Quote Quoting acip4u
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Sorry that i was not clear enough i guess i mean if in forcloser the difference of the mortgage if you owe 350,000 on the mortgage and your home sells for 300,000 you would be exempt from the 50,000 on paying income taxes on to the IRS
Okay, I think your question is that if you take a loss of, using your example, $50,000 on the sale of your home, can you deduct it from your income tax? If that is the question, my answer is I think so - I think it is a capital gain/loss.