Why do I respond to people this stupid?  

Crow it is apparent you think you know but what you know is crap!

I had a good laugh, when I read that on a loss of revenue that it "depends how the revenue is reported"  you are just like Bladeslap CLUELESS.  There is NO revenue on a loss!

On investment property you pay taxes on capital gains.  You idiot, Not on debt.  You can't lie on the amount gained or lost, because more than one company will report the sale and numbers are easily verified.  Ask any real estate appraiser, how they know what stuff sells for.

 There must be capital gains to pay taxes on, currently capital gains tax is 20%, and states have varying tax laws.  I could go over how that is figured, but it is way over your mental capacity!  

I would recommend to you and Bladeslap that you always use a lawyer and a real-estate broker when buying or selling your home, and stay away from investment propert.