People have lost equity and said screw it and walked away, now we are taxpayers are footing the bill for others.

This was so completely out of the ordinary, I had no idea it would move that fast.

Develop BiggerPockets into the most beloved brand in real estate, have it become a household name in America, and help millions of ordinary Americans feel comfortable taking advantage of the wealth building power of Real Estate.Thank you BiggerPockets!

RM with ARV 270k and owed is 200k and needs 10k repaired.The only way she'll agree to something is if she can get money to pay rent after she sells.I work for NASA, but please, someone tell me if there is any meat on this bone.P.s. she is defaulting because of missed tax payment $1100

@Herb MitchellActually, there are tax considerations within an IRA.Passive income from rental income, interest, dividends and royalties are wholly tax exempt to an IRA.When an IRA (or other tax-exempt entity) engages in a trade or business on a regular or repeated basis, and is therefore competing with taxpaying business,  there is a tax known as UBIT that is designed to level the playing field.  

Some people think that people in jail have too good of life because they sit around all day, get free housing, and free food, paid for by the taxpayers. 

2) I believe from the threads I've read so far I think we would be taxed at the ordinary income rate but just want to confirm.3) Here is the tricky part.

Although, I've been beating myself up a bit with my latest round of projects and then about a week ago I took a different viewpoint and considering that I had three big projects, basically all total rehabs including the one that needed the rebuilt basement, plus a few factors that were truly out of the ordinary-not unexpected, that ALWAYS happens, but a few real oddball items here, I guess for each one it didn't take me that long and of course in ANY business, NO ONE is ever 100%, there's always room to improve for anyone.

If the seller carry back note is drafted in your name (i.e. the taxpayer) then the seller carry back note is taxable boot. 

It is 27.5 SL depreciation that is allowed and therefore there will not be any depreciation recapture taxed at ordinary rates.