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tax relief for deed in lieu on non-principal home property

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ladybug Guest	Posted: Fri Jul 03, 2009 6:36 am    Post subject: tax relief for deed in lieu on non-principal home property My son is going throught the process of deed in lieu on a condo he originally lived in and then rented as he moved. He is deeply in debt but is not filing for bankruptcy. He has been unable to rent and the property has been on the market for 90 days. So will he have to pay taxes on the "forgiven debt" if the deed in lieu goes through? This is not something he is even thinking about. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
adonis Joined: 22 Oct 2005 Posts: 4814 Location: ALASKA 269.19 Dollars($)	Posted: Fri Jul 03, 2009 8:06 pm    Post subject: Hi ladybug, It will depend upon the state laws whether or not your son will have to pay the taxes on the forgiven debt. You should consult an attorney and he will let you know about your state laws regarding "forgiven debt". _________________ Procrastination is the enemy of your financial success

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