Posted on: 14th May, 2009 11:35 am
If I am shortselling a rental will I be held responsible for the differenc if my house sells for less than I owe.
If the bank forgives the remaining debt will I still be taxed since it is a rental and not my primary?
Does having no real assets help to decrease the chances?
Does the bank have a time restriction to go after the difference?
If the bank forgives the remaining debt will I still be taxed since it is a rental and not my primary?
Does having no real assets help to decrease the chances?
Does the bank have a time restriction to go after the difference?
Yes they can probably come behind you, unless you negotiate a full release as a part of your agreemtn with the bank.
If your bank forgive's yru difference then they are goign to send you 1099-C. This form means income for you, resultign in taxable income.
Having said that, With the Mortgage debt Forgiveness Act of 2007, you will be able to exclude up to $2M dollars of debt forgiven on your PRIMARY RESIDENCE filign jointhly.
Debt forgiveness on the secodn home, rental property, business property or credit card do not qualif.
If your bank forgive's yru difference then they are goign to send you 1099-C. This form means income for you, resultign in taxable income.
Having said that, With the Mortgage debt Forgiveness Act of 2007, you will be able to exclude up to $2M dollars of debt forgiven on your PRIMARY RESIDENCE filign jointhly.
Debt forgiveness on the secodn home, rental property, business property or credit card do not qualif.