Made a Bad Investment, Need Info - what are the real estate penalties in nevada?

I made a bad investment on some homes in Nevada (Vegas) in December 2005 and can't afford to keep them past September of this year. I know if I sell before 2 years there might be tax penalties I have to pay, how much are those penalties? Also is there anything else I can do to be able to get out of this situation without losing money because selling the homes does gaurentee me not losing money. Is there any other option other than selling the homes or letting the bank foreclose on the homes that I can do. I'm eager to hear anyone's suggestions. Thanks.

There is no tax penalty. You just do not get the tax break for long term capital gains. You will pay taxes on your gain at the your regular tax rate. And don麓t forget to includ all you costs in the propery, not just what you paid for it. Improvements are included in the costs.

First of all taxes are just about 40% just like any other short term gain. Now you may want to consider renting as this will reduce your cost of operations. If you don't want to pay taxes so badly, do something to offset your gains (like donate to a charity).

Rival