Proposed Law Eliminates Tax Penalty Of Foreclosure
One of biggest problems for people facing foreclosure of investment property in today's real estate recession is tax liability for the difference between the mortgage balance and the value of the property at the foreclosure sale or at time of a deed in lieu or short sale. The Wall Street Journal reports that there is a bill in the House of Representatives to eliminate income tax liability for debt forgiveness for homeowners. The bill passed Ways and Means Committee, and according to the paper the bill has bi-partisan political support. The law if passed would remove a significant tax penalty for people facing the loss of real estate during the current market downturn.
That bill probably won't apply to investment property, since your personal residence ("homeowners") isn't investment property.
Property is always a sound investment,they key is buying at the right time to maximize the return.
A recession is the right the right time to buy property if you have the money or means to do so.
The worst time to buy property for investment purposes is in a property boom.