Posted on: 13th Nov, 2009 08:06 pm
i AM REALLY CONFUSED BY DIFFERENT THINGS i HAVE READ AND I NEED SOME CLARITY!! I AM CURRENTLY GOING THROUGH A SHORTSALE OF MY PRIMARY RESIDENCE. I PAID ALL OF MY PAYMENTS UP UNTIL A MONTH AGO. I AM FIRST TRYING TO FIND OUT IF I WILL STILL BE ABLE TO USE THE INTEREST PAYMENTS TOWARDS A DEDUCTIBLE ON MY 2009 TAX RETURN. sECONDLY, I HAVE BEEN TOLD THAT THE $60000 DIFFERENCE WILL BE FORGIVEN BUT I WILL STILL GET A 1099 FORM. HOW DOES A 1099 WORK??
Hi CURIOUS!
Welcome to forums!
As far as I can understand your situation, if your property is short sold, then you won't be able to use the interest payments towards deductible on your tax return.
As far as the deficient balance is concerned, it is not forgiven by the lenders. Though your lender have said that he would forgive the dues, it would be mentioned as an income in the 1099 form. You may have to pay taxes on that forgiven amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand your situation, if your property is short sold, then you won't be able to use the interest payments towards deductible on your tax return.
As far as the deficient balance is concerned, it is not forgiven by the lenders. Though your lender have said that he would forgive the dues, it would be mentioned as an income in the 1099 form. You may have to pay taxes on that forgiven amount.
Feel free to ask if you've further queries.
Sussane
sussane, i disagree with you on deducting interest payments made on a mortgage. i see no reason why curious can't continue to deduct her interest and taxe next year and even more...
as for the 1099, you may or may not get one. i've seen both opinions posted with differing results.
as for the 1099, you may or may not get one. i've seen both opinions posted with differing results.
