Compare Mortgage Quotes

Lacastles · Joined: 13 May 2009 Posts: 1 1.27 Dollars($)

In a short I was informed I would be 1099ed! I thought they changed the tax law?...As a seller in a short sale am I responsible for the amount forgiven?

smithsussane · Posted: Wed May 13, 2009 8:20 pm Post subject:

Hi Lacastles!

Welcome to forums!

Generally, in a short sale, the lender has the right to demand the deficient amount from you. However, the lender can forgive the deficient amount. Once the deficient amount is forgiven, the lender can issue a 1099-c and you may have to pay taxes on that amount.

Feel free to ask if you have further queries.

Sussane

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

The lender ismost probably goign to send you a 1099C.

In normal situation this you had to report to IRS as income, while filing for taxes.

Due to 2007 change in law you need to report, but it will nto considered as a income. You do nto owe any taxes on it. I think the law expires in 2012.

Th

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1