form 1098

lpn815 · Joined: 07 Feb 2010 Posts: 1 1.33 Dollars($)

I sold my home in a short sale, but i received a form 1098 in line 1 shows 37000 but i did not make any payments so how it works?

adonis · Posted: Sun Feb 07, 2010 8:47 pm Post subject:

Hi lpn,

Was the deficient balance resulting from the short sale forgiven by the lender? If yes, then the IRS will consider this as your income. Thus, you will be charged taxes on that amount. However, you should check out if the Mortgage Debt Relief Act is applicable in your state. Depending upon that you may not have to pay the taxes.

bg0427 · Posted: Sun Feb 07, 2010 10:39 pm Post subject:

Yes you are going to want to bring this with you when you get your taxes done. Was this your primary residence?

Posted: Tue Feb 16, 2010 4:17 pm Post subject: form 1098

I also got a 1098 with a lot of interest reported but I made very few mortgage payments in 2009 leading up to a short sale. The first posters question was not answered, is this full amount on the 1098 deductible?

Guest

I do not think the full amount will be deductible. However, you should take the help of tax adviser in this regard and get his suggestions.

Guest

I also received a 1098 for interest that I did not pay. My tax lady put it all down as a deduction, resulting in a very nice tax return. Something doesn't seem right though. Hopefully some one has a helpful answer.

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