If you own a piece of real estate and the bank takes it away from you, you think that you have lost something. That's just common sense. So you should be able to put a loss on your tax return. Bad enough that the IRS should question your loss, but they may claim that you have a gain. Talk about rubbing salt in the wound. If you think in double entry, like most good accountants do, it is not at all troubling. Taking the property off the books is a credit, you are going to have to debit something....
If you own a piece of real estate and the bank takes it away from you, you think that you have lost something. That's just common sense. So you should be able to put a loss on your tax return. Bad enough that the IRS should question your loss, but they may claim that you have a gain. Talk about rubbing salt in the wound. If you think in double entry, like most good accountants do, it is not at all troubling. Taking the property off the books is a credit, you are going to have to debit something....
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