Posted on: 04th Jun, 2010 01:56 pm
Hello, I live in west virginia. A anti-deficiency state. meaning they cant persue you for any money they dont get from the sale of your home. My question is, will i be liable for a 1099-C tax obligation. if so can i claim it under the relief act of 2007 under pricipal residence exclusion
Hi Wizzard,
As the lender will forgive the deficient balance resulting from the sale of the property, he will issue a 1099-c form to you. The IRS will consider this as your income and may charge taxes for it. If the Mortgage Dent Relief Act is prevalent in your state, then you won't have to pay the taxes.
Thanks
As the lender will forgive the deficient balance resulting from the sale of the property, he will issue a 1099-c form to you. The IRS will consider this as your income and may charge taxes for it. If the Mortgage Dent Relief Act is prevalent in your state, then you won't have to pay the taxes.
Thanks
Hi,
As per my knowledge if the lender sale your property and return you back the deficient money it will be considered as your income. For any income you need to pay tax to the IRS. However, if your state law states that it is not your income then you do not have to pay the tax. The best thing would be to consult with a good attorney to get detailed information.
As per my knowledge if the lender sale your property and return you back the deficient money it will be considered as your income. For any income you need to pay tax to the IRS. However, if your state law states that it is not your income then you do not have to pay the tax. The best thing would be to consult with a good attorney to get detailed information.