If she was ever served with a notice of foreclosure, even if the lender did not follow through with the sale, she can't do anything with the property except sell it and payoff the lien.The law allowing for the forgiveness of debt to avoid taxation is about to expire so now that she has waited she may have a tax liability on amounts written off from her underwater property.A short sale would be best, if she qualifies, but to do a short sale the owner must have a financial inability to pay, I'm not sure the bank has to agree if she is sitting on cash.IMO, she needs to pay as agreed, catch up the loan, then lease it over time allowing the value to come back and then sell it. :)

How government influences financial management decisions along with taxation.

If you will be investing in Canada, there will be some differences, most notably in the areas of regulation (law), finance (which you would likely know already), and taxation.

You will quickly notice the differences from Canada are most notably in the areas of regulation (law), finance, and taxation.

Your interest expense after taxes may be different for the cash received, above the loan basis but if invested at a higher rate you may make money after tax, at least it's operating capital.

S-Corp taxation allows you to treat some of your income, usually up to 66%, as a dividiend, so you'll only have to pay self employment tax on 34% of your ordinary income.

Potentially there could be a double taxation situation costing 10% in taxation.

I really would love to do more like flipping or some of the fancier stuff that some of the members here do but first, I would like to study the implications of taxation, especially CGT.

The Company then elects S-Corp status, and avoids the double taxation issue.

Are you up to speed on taxation of the SD IRA?