Short Sale Tax
8-) I have a question regarding tax on preforeclosure short term sales. Would those profits be treated as income or capital gains?? I am interested in creating cash flow, so I would not be reinvesting the profits. Would an LLC protect you from max. tax liabilities?
Thanks in advance, if anyone knows the answer.
Yes, property taxes are deductible.
Your lender gives you a 1098 for the amount of interest paid on your loan during the year. Points and loan origination fees that may be considered as additional interest, are often not reported on the 1098.
Mortgage interest for your first or second home is deducted on Schedule A. The mortgage interest deduction for investment property is calculated on Form 4952.