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Alex buys a building for a total of 1,000,000 including a cash down payment of 100,000 and a mortgage to the seller of 900,000. Two

Alex buys a building for a total of 1,000,000 including a cash down payment of 100,000 and a mortgage to the seller of 900,000. Two years later after real estate values have decreased and the mortgage has decreased to 850,000 due to principal payments, Alex and seller agree to reduce the mortgage to 700,000. What are the consequences to Alex? (Please solve this problem in tax perspective)

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