What are the tax consequences to terry

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Question - Terry owns real estate with an adjusted basis of 600,000 and a fair market value of 1.1 million. The amount of the nonrecourse mortgage on the property is 2.5 million. Because of substantial past and projected future losses associated with the real estate development (occupancy rates of only 37% after three years), Terry deeds the property to the creditor

A. What are the tax consequences to Terry?

B. Assume that the data are the same, except that the fair market value of the property is 2,525,000. Therefore, when terry deeds the property to the creditor, she also receives 25,000 from the creditor. Wjat are the tax consequences to terry?

Reference no: EM131873859

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