Posted on: 07th Mar, 2010 09:37 pm
i have just short sale my house last aug.and i did received a form 1099c with an amount of 125,000.i just filed my tax and my tax man told me to ignore the said form as i didnt really made any profit from the house.he claimed that according to the seminar he attended as long as you didnt take any money from the house or refinance your house you dont need to pay back uncle sam.how true is this?will i get in trouble for this from irs if this is not true?thank you.
Hi conz,
The forgiven amount resulting from the short sale of the property will be considered as your income and is taxable by the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes to the IRS. I would suggest you to speak to another tax expert and take his/her opinion in this regard.
Take care.
The forgiven amount resulting from the short sale of the property will be considered as your income and is taxable by the IRS. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes to the IRS. I would suggest you to speak to another tax expert and take his/her opinion in this regard.
Take care.