Tax Structure refers to any fact that may be pertinent to comprehending the alleged or claimed Federal income tax treatment of the transaction. Tax Treatment refers to the asserted or claimed Federal income tax treatment of the transaction.
Accepting less than what you purchased for a piece of investment real estate when you sell it at a loss. Normally, you can deduct your losses from ordinary income when you sell an investment or rental property at a loss. Remember that most people record this income on a Form 1040 each year when they file their taxes. If your capital losses are more than your capital gains, you can deduct the lesser of $3,000 ($1,500 if you're married and filing separately) or the total net loss listed on line 16 of Schedule D from your income (Form 1040). Fill out line 7 of your Form 1040 or Form 1040-SR to claim the loss.
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