Comments on: What are the IRS tax implications of a short sale and a foreclosure? http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/ Stopping in your tracks Fri, 01 Jul 2011 05:34:08 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Rob http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/comment-page-1/#comment-843 Rob Mon, 22 Feb 2010 02:27:28 +0000 http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/#comment-843 <a href="">Larhonda</a> There is no difference check out this link from irs.gov it has the information and includes info concerning if you were in bankruptcy. For further information call 1-800-829-1040 Larhonda

There is no difference check out this link from irs.gov
it has the information and includes info concerning if you were in bankruptcy. For further information call 1-800-829-1040

]]> By: WealthBuilder http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/comment-page-1/#comment-842 WealthBuilder Fri, 19 Feb 2010 02:40:54 +0000 http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/#comment-842 <a href="">Chin</a> The person who shorted the bank gets a 1099-C Cancellation of Debt. It is taxable income, UNLESS THE recipient is insolvent. If partially insolvent, then only the part of the debt less the insolvent portion is taxable. So if someone WALKED on a note, but had assets greater than debts (including the house and original note), then someone gets a tax surprise! Tax Advisor Chin

The person who shorted the bank gets a 1099-C Cancellation of Debt. It is taxable income, UNLESS THE recipient is insolvent. If partially insolvent, then only the part of the debt less the insolvent portion is taxable.

So if someone WALKED on a note, but had assets greater than debts (including the house and original note), then someone gets a tax surprise!

Tax Advisor

]]> By: Take Responsibility http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/comment-page-1/#comment-841 Take Responsibility Thu, 18 Feb 2010 00:45:09 +0000 http://online-foreclosure.com/foreclosure/what-are-the-irs-tax-implications-of-a-short-sale-and-a-foreclosure/#comment-841 <a href="">Leonie</a> The bank should issue a 1099 for debt relief of $50,000--and that amount can be taxable to the person who owed the debt. If the home was a business property, there may be a loss on the home to offset part of the gain. Additionally, if the taxpayer is bankrupt or insolvent, the debt relief may be excludable from income. In broad terms, to be insolvent, the taxpayer's liabilities must exceed their assets. Unless the person is willing to simply include the $50,000 on his tax return, further research or hiring professional help is in order. Leonie

The bank should issue a 1099 for debt relief of $50,000–and that amount can be taxable to the person who owed the debt.

If the home was a business property, there may be a loss on the home to offset part of the gain.

Additionally, if the taxpayer is bankrupt or insolvent, the debt relief may be excludable from income. In broad terms, to be insolvent, the taxpayer’s liabilities must exceed their assets.

Unless the person is willing to simply include the $50,000 on his tax return, further research or hiring professional help is in order.

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