People ask me all the time, ROBERT: We need to pay taxes, if we sell the home in Short Sale?
Usually the lender is required to report the amount of the canceled debt to you. Then the IRS, send you the Form 1099 ”C” , also called (Debt Cancellation).
ROBERT: What if for some reason the home do not sell ?
In the case of Foreclosure, you will also get a Form 1099 “A” ; the IRS called this (Abandonment of Secured property). Even when I had success, finishing the process of “Short Sale”, I can not give any advice, concerning taxes. You need to consult a knowledgeable Tax resource.
Comments are closed for this blog post