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Will i be subject to a 1099-C

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Wizzard Guest	Posted: Fri Jun 04, 2010 1:56 pm    Post subject: Will i be subject to a 1099-C Like 0 Dislike 0 Hello, I live in west virginia. A anti-deficiency state. meaning they cant persue you for any money they dont get from the sale of your home. My question is, will i be liable for a 1099-C tax obligation. if so can i claim it under the relief act of 2007 under pricipal residence exclusion _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Fri Jun 04, 2010 8:48 pm    Post subject: Like 0 Dislike 0 Hi Wizzard, As the lender will forgive the deficient balance resulting from the sale of the property, he will issue a 1099-c form to you. The IRS will consider this as your income and may charge taxes for it. If the Mortgage Dent Relief Act is prevalent in your state, then you won't have to pay the taxes. Thanks
rita2 Joined: 23 Apr 2010 Posts: 286 51.03 Dollars($)	Posted: Sat Jun 05, 2010 12:55 pm    Post subject: Like 0 Dislike 0 Hi, As per my knowledge if the lender sale your property and return you back the deficient money it will be considered as your income. For any income you need to pay tax to the IRS. However, if your state law states that it is not your income then you do not have to pay the tax. The best thing would be to consult with a good attorney to get detailed information.

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