Posted on: 02nd Jun, 2010 08:56 am
I understand that a new law allows tax to be waived on foriven home loans... What if my ex-husband and I foreclose- this would not qualify as a "forgiven" loan, correct?
Thank,
A. Ingman
Thank,
A. Ingman
Welcome rojo,
If the lender forgives the balance amount after the foreclosure, in that case the IRS will consider this as a forgiven debt and may charge taxes on it. However, as the Mortgage Debt Relief Act is still in vogue, you may not have to pay the taxes.
If the lender forgives the balance amount after the foreclosure, in that case the IRS will consider this as a forgiven debt and may charge taxes on it. However, as the Mortgage Debt Relief Act is still in vogue, you may not have to pay the taxes.