Did a Deed in Lieu of a rental condo I owned in Naples, FL area. Got a 1099-a from BofA. Box 2 - Balance of Mtg $204K. Box 4 - FMV shows $350K. Box 5 checked Yes for personally liable. Owned the condo since 2005.
Question is - If I get my marginal tax rate down to the 15% bracket... am I understanding correctly that I will pay NO taxes on the "perceived gain" shown on the 1099-a. Also, how does the depreciation I took over the past 3 years on the condo work in a situation like this?