My home is in a short sale and due to close in a week or so. In lieu of a foreclosure, I went the short sale route. I have been informed that the bank will be sending a 1099C to the IRS. It could be in the amount of $30,000 or so and will be added to my income. I read that the IRS is forgiving these 1099Cs due to foreclosures everywhere. Will this also apply to the short sale route?
Based on an article on the IRS's website, the Mortgage Forgiveness Debt Relief Act of 2007 creates an exception for certain mortgage loan forgiveness obtained in 2007, 2008 and 2009. Read the IRS article and review IRS Form 982 and its instructions for more information and to see if your situation will qualify. For additional help, consult a qualified tax adviser.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Based on an article on the IRS's 