Robinson owns a warehouse that is used in his auto parts store. The warehouse has a FMV of $91,300, an adjusted basis of $42,700, and an outstanding mortgage of $60,400. Robinson is not bankrupt or insolvent, but due to COVID-19, he is having trouble making the payments on the mortgage and is able to persuade the bank to forgive $24,400 of the debt. What are the tax consequences for Robinson? (If answer is zero, please enter O, do not leave any fields blank.) Income from the forgiveness of debt New basis $ $

Robinson owns a warehouse that is used in his auto parts store. The warehouse has a FMV of $91,300, an adjusted basis of $42,700, and an outstanding mortgage of $60,400. Robinson is not bankrupt or insolvent, but due to COVID-19, he is having trouble making the payments on the mortgage and is able to persuade the bank to forgive $24,400 of the debt. What are the tax consequences for Robinson? (If answer is zero, please enter O, do not leave any fields blank.) Income from the forgiveness of debt New basis $ $

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 75IIP

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