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DEFAULTING ON PERSONAL ANNUITY LOAN
Hey guys! My husband and I took out a loan from is annuity. The interest rate/payment is high. We know there will be a tax penalty if we decide to default on the loan and claim it as income. We are also in the process of doing a BRRR project on a mixed portfolio deal. We have a lot of expenses this year and we are not doing the REFI until 2019. At this time, the rentals do not cash flow (as they are vacant and being renovated). So basically we are going to be at a loss for the 2018 tax year. Will all of my renovation expenses ($80,000 by the EOY), plus the negative cash flow wash out the $35,000 annuity income when it comes tax time? I just don't want to find myself with a crazy tax bill. Thanks for any help!