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lynnbrown

We sold our investmenet property (duplex) for a lot less than what we owed (approx $150K less!!)

Do we have to pay personal income tax on the short fall?

jameshogg · Posted: Tue Mar 24, 2009 9:14 pm Post subject:

Hi info,

As far as I know, you'll not have to pay the taxes for the short fall. But you will have to pay the deficient amount to the lender. If you do not pay the deficient amount, then the lender may charge it off or forgive it. If the lender charges it off, then a 3rd party collection agency will collect the dues from you. But if the lender forgives it, then you'll have to pay taxes.

Thanks

Guest

What if you filed for Bankruptcy - does that protect your from the lender or collector to get the deficiency?

smithsussane · Posted: Wed Mar 25, 2009 9:45 pm Post subject:

Hi infoss!

Welcome to forums!

When you file bankruptcy, the court issues an automatic stay. During this automatic stay, the lenders or creditors will not be able to take any actions against you. After the discharge, if you reaffirm the debts, then you would be liable to pay it off. In such a case, if you don't pay off the debts, then the lender may foreclose and seek the deficient amount.

Sussane

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Any Expert with regards to Short Sales