Posted on: 11th Oct, 2010 01:46 pm
I am ready to close on an lender-approved Short Sale where I sold the home for $97,000. The appraised value of the home came in at $97,000. The principle owed on the home was around $220,000. There is no promissory note but i will have to pay cash contribution for me to close this short sale. S
So what is my tax implication for this transaction (for Income tax return 2010)? please advise me.
Thanks
So what is my tax implication for this transaction (for Income tax return 2010)? please advise me.
Thanks
Hi sleevegas!
Welcome to forums!
If the lender forgives the balance amount resulting from the short sale of the property, then the forgiven balance will be considered as your income and the IRS can charge taxes for the same. However, depending upon the Mortgage Debt Relief Act, you may not have to pay any taxes for the forgiven balance amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the lender forgives the balance amount resulting from the short sale of the property, then the forgiven balance will be considered as your income and the IRS can charge taxes for the same. However, depending upon the Mortgage Debt Relief Act, you may not have to pay any taxes for the forgiven balance amount.
Feel free to ask if you've further queries.
Sussane
Thanks for your information as above.....can you able to email me on the Mortgage Debt Relieve act for me.....
my email address is : "sleevegas64@yahoo.com"
Many thanks.
s
[Email address deactivated as per forum rules. Thanks]
my email address is : "sleevegas64@yahoo.com"
Many thanks.
s
[Email address deactivated as per forum rules. Thanks]
Hi sleevegas,
You can check out the information on Mortgage Debt Relief Act from the given page:
"http://www.irs.gov/individuals/article/0,,id=179414,00.html"
You can check out the information on Mortgage Debt Relief Act from the given page:
"http://www.irs.gov/individuals/article/0,,id=179414,00.html"