Quote:
Originally Posted by Rag Top Daze
Earlier this year we went to several auctions. We stopped going tho when we found out this was the way they all were going. It's a waste of time.
We have also found out that when you see a bank owned property listed at a reasonable price for today's market, it's just another game they are playing. When you go to look at it, you find out they are accepting multiple bids. A silent auction sort of plan. We refuse to play that game too.
I can't imagine why the banks are interested in holding onto these properties.
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The reason they hold on to the properties is because it shows a Capital Loss on the books. A Capital Loss can be applied directly to the tax portion of a Capital Gain. It all has to do with liabilities. If they sell the house, great. If they do not sell the house, great. They make out in both situations, because they are holding or selling a house well below the money invested, its a loss either way and can be used to offset the Capital Gains Tax either way. That is how you can still show a profit even though you are holding a huge loss, not only are you lowering your tax burden, but that money then becomes profit along side the Capital Gain for the year or quarter.
SEE MY POST BELOW THIS INFORMATION IS ONLY PARTIALLY CORRECT