New Tax Law for Foreclosures

[Kamper420]

My question involves a foreclosure in the State of: CA

I heard recently that if you short sale your property you will not be taxed on the difference even if you refinanced and pulled cash out? Is this true?
Thanks

[OhMy]

It is true, You can no longer be taxed if a short sale or foreclosure is done in 2007, 2008 or 2009.

Here is a link :

http://turbotax.intuit.com/tax-tools...rbotax/article

After 2009 the old rules come back into play

[Kamper420]

It is true, You can no longer be taxed if a short sale or foreclosure is done in 2007, 2008 or 2009.

Here is a link :

http://turbotax.intuit.com/tax-tools...rbotax/article

After 2009 the old rules come back into play

Thank you for the link

[Kamper420]

It is true, You can no longer be taxed if a short sale or foreclosure is done in 2007, 2008 or 2009.

Here is a link :

http://turbotax.intuit.com/tax-tools...rbotax/article

After 2009 the old rules come back into play

After reading the link it seems to be the same. If you refinance or pulled cash out you will be taxed. The reason for my post is because I heard if you pulled cash out or refinanced that you will not be taxed.

[OhMy]

After reading the link it seems to be the same. If you refinance or pulled cash out you will be taxed. The reason for my post is because I heard if you pulled cash out or refinanced that you will not be taxed.

Not if you pulled money out and did repairs to the home, new carpet etc, then you will not be taxed

[Kamper420]

Not if you pulled money out and did repairs to the home, new carpet etc, then you will not be taxed

sure I used some of the money for my patio cover and tile but I also bought a new truck. Looks like BK for me!