SHORT SALE TAX IMPLICATIONS

[Tess Vismale]

I have just enlisted The Short Sale Service, to assist me in a short sale for my rental. The tenant's boyfriend wants to purchase the property. The plan is to simultaneously do the short sale and sell the property to him.

I have a question on the tax implications for me that I will also post in the Tax & Legal section. Do I pay capital gains on the difference? Will a land trust help with the taxes?

If you have any knowledge please let me know.

THANKS!