If you do a short sale, does this affect the home owners taxes? If so, how and/or why.
Normally, the amount of forgiven debt by lender is incurred by the homeowner as income and the lender will send a 1099 or 1099-C to the homeowner. However, for years 2007, 2008, 2009 The Mortgage Forgiveness Debt Relief Act excuses that 1099 income from being taxable if it was from a short sale or foreclosre of a primary residence.
Great Feed Back!
wow that is great! I was sweating because i thought the SS i did the Romeros were going to have to pay taxes on my 37K profit i made. I did skim the provisions but i didn’t really see anything verbage specifics to a SS???