Tax Question please help I am stupid!!!!?
[AUTHORITY REQUIRED] You personally own an apartment complex with
a basis of 3,000,000. Your personal net worth is 0. You default on
the complex’s mortgage, which has a balance of 7,000,000. The lender
forecloses and sells the complex for a net amount of 5,000,000. The
lender forgives the balance due to your nonexistent net worth.
Determine the tax consequences.