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    #16
    Originally posted by Maribeth View Post
    If Taxpayer B is not liable for the debt, i.e. the debt is non-recourse, then taxpayer B will not have cancellation of debt. In a non-recourse debt, the lender can only take the property back. Taxpayer B will show a $10000 loss on the property.

    Taxpayer A will have the property loss in current year of $150,000. In 2013, taxpayer A will have the cancellation of debt income of $140,000. Net is loss of $10,000.

    Maribeth
    I've really learned a lot from you guys in this forum. Thank you very much.

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