Hello! I was just wondering if anyone knew what the tax obligations are for someone who goes through with a deed-in-lieu. For example, if I deed my house back to the bank, will I end up paying taxes on the amount I still owed to the bank? I still owe $240,000. So if I go through with a deed-in-lieu, will I have to pay taxes on that $240,000 as if it was the amount I gained through the sale of the house? Like a capital gains tax? Thanks...