I understand Cancellation of Debt Income is not taxable if loan was a non-recourse loan for purchase of a personal residence. Would this be true for purchase of a Rental property as well or would a cancellation of debt income be taxable for a Rental property with a non-recourse loan?
Also, I understand that unlike for personal residence, gain on sale due to foreclosure of a rental property does not have a $250,000 exclusion if the requirement of 2 out of 5 years as a personal residence is not met. So gain would be taxable. Is this correct?
Thanks again.