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 Lacastles
Joined: 13 May 2009
Posts: 1
1.27 Dollars($)
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 Posted: Wed May 13, 2009 10:12 am Post subject: In a short I was informed I would be 1099ed! I thought they |
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| In a short I was informed I would be 1099ed! I thought they changed the tax law?...As a seller in a short sale am I responsible for the amount forgiven? |
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smithsussane
Joined: 18 Sep 2008
Posts: 4512
Location: Alaska
439.85 Dollars($)
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| Posted: Wed May 13, 2009 8:20 pm Post subject: |
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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 |
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Realgeni
Joined: 13 Apr 2009
Posts: 1434
99.76 Dollars($)
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| Posted: Sat May 16, 2009 8:13 pm Post subject: |
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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 |
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