Some of these investors like Trump are pretty darn smart. There have to be schemes to avoid tax problems. What about moving into 2nd home and then filing for foreclosures, claiming owner occupied?
Why would Bank not report loss to IRS on corporate taxes? There are two sets of book, the banks books and investor’s 1099 that banks dont have to send. Unless IRS can match the corporate loss with 1099 that was not mailed, I am very skeptical that anyone is going to get into trouble.
