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 krh0tm2
Joined: 10 Sep 2009
Posts: 1
1.31 Dollars($)
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 Posted: Thu Sep 10, 2009 8:02 am Post subject: Short Sale Taxable Implications |
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| We are considering short selling our primary residence. We owe $300K and the real estate agent says that comp's in the area are going for about $130K. Would I have to show as taxable income the difference and have to pay taxes on this amount? |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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| Posted: Thu Sep 10, 2009 11:41 am Post subject: |
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| If it is your primary residence then you will not pay taxes on the deficient amount |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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| Posted: Thu Sep 10, 2009 11:05 pm Post subject: |
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Hi krh,
In case of a short sale, the deficient amount resulting from the sale of the property is not forgiven by the lender. You will have to repay it to him. In case, if the lender forgives the deficient amount, then depending upon the Mortgage Debt Relief Act, taxes would be forgiven.
Thanks |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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| Posted: Sat Sep 12, 2009 10:09 am Post subject: |
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| That is true only for the primary residence |
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