 jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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 Posted: Sun Dec 07, 2008 11:31 pm Post subject: |
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Hi notagain,
As far as I know, in order to qualify for the Tax Break for Mortgage Debt Forgiveness, one has to stay in the property for 2 years of the last five years. As you have not stayed for 2 years, you will not qualify for it.
As far as charging off first mortgage is concerned, it does not mean that your loan is forgiven. It only means that the first lender has sold off your mortgage to a collection agency who will in turn collect the dues from you. As you will be paying the dues, I don't think you will have to pay taxes on the charged off amount.
Thanks |
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