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  1. #1

    Default Short Sale Taxes

    How would a short sale on a property effect me when I receive 1099? Every year I file my taxes, I've never really owed IRS but always refund. I'm worried that I could owe next year for 2011. What could possibly happen? I'm unemployed. Would I have to file bankruptcy then? Any advice would greatly be appreciated.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Short Sale Taxes

    It's my understanding that a short sale would qualify as restructuring the mortgage debt, such that you would be protected by the Mortgage Forgiveness Debt Relief Act of 2007.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Short Sale Taxes

    Quote Quoting Mr. Knowitall
    View Post
    It's my understanding that a short sale would qualify as restructuring the mortgage debt, such that you would be protected by the Mortgage Forgiveness Debt Relief Act of 2007.
    Assuming that the home is his primary residence rather than an investment property.

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