In this case you may be eligible for a foreign tax credit and there may be treaty provisions that exempt some income.I would definitely seek a good tax adviser (familiar with international income tax issues) when or if you start to rent the property.

I see money taken away from me and used to pay for the medical care of elderly who did not plan for their own retirement health care.Now the government has gone so far as to tell me what size soft drink I can buy and force me to buy a private sector product and if I don't, I pay a penalty.You would think that a government this intrusive would at least protect it's International Borders, but they refuse to even do that.

I am contemplating to make a loan from my solo 401k to a friend.The loan will be secured by the property.I would be interested in a word of wisdom on how it is properly done to avoid trouble with IRS and/or loosing tax exempt status of the funds.What paperwork is sufficient?

Consider that if the seller can't pay the mortgage and can't afford to come to the table with cash, generally the next best option is a foreclosure, and benefits of a short sale over a foreclosure are huge:- Foreclosure can often result in deficiency judgment whereas it is generally negotiated away in a SS- Foreclosure will generally result in a tax bill whereas if you live the home, you are currently exempt from taxes on a SS deficiency- Foreclosure will hit your credit hard (7+ years as a non-payment) whereas a SS won't hurt you too bad (hits your credit as a "negotiated settlement" and you can generally get an FHA loan 2 years later)- Foreclosure you won't get any cash whereas most short sales you'll generally get at least $1000 and often much moreIf I were a homeowner in distress, I would view a SS as an amazing option compared to most of the alternatives, regardless of whether some investor was going to make money off the deal.

Better to be conservative and secure financing you can comfortably afford for the long term, accounting for the unexpected (job loss, medical expenses, ???).

I'm currently employed in the medical field and can't wait to get out.

I believe that if I can do this for 12 months - not make payments - I can pay off almost all of my bills - cars, medical, etc - and be actuclly in a better financial situation than before.My concern is if we short sale for, say $110k, that still leaves the 2nd.

Since it was owner occupied, you are exempt from tax on the gain if you live in it for 2 of the last 5 years, I believe.

One of the reasons is to avail of the mortgage interest deductionHowever, me and my partner are also close to hitting the 328,000 joint filer phase-out exemption limit.

However, casual one-time domestic work under 52 hours is exempt under this Labor Code.