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Level 1
December 6, 2019
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Insolvent client sold their rental property under a short sale. The gain is $143K. Can an insolvency exclude the gain on the sale?

  • December 6, 2019
  • 2 replies
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Best answer by abctax55

Yes.

The insolvency is determined prior to the short sale.

Search for DavidFogelCPA - his website has many, many helpful articles on the subject. 

2 replies

abctax55
abctax55Answer
Level 15
December 6, 2019

Yes.

The insolvency is determined prior to the short sale.

Search for DavidFogelCPA - his website has many, many helpful articles on the subject. 

HumanKind... Be Both
abctax55
Level 15
December 6, 2019
HumanKind... Be Both