Hi, Stars -
First off, I understand that it's likely that none of us are CPAs or are qualified to give tax advice; that said, I have a potential seller who abandoned her primary residence perhaps a year ago and hasn't had anyone living there since. Does anyone have experience with this in relation to the Mortgage Debt Relief Act? Would she be eligible for tax relief on this property?
She should be eligible if she lived 2 out of the previous 5 years in the home. But check with a CPA.
Read IRS Pubication 4681 Debt Cancellation. It may help your client without thr MDRA. A CPA told me she uses this as her primary debt relief.
I have sold vacant home and this did not effect the tax consequences for the seller. I live in Arizona which is a Deed of Trust state. I don't think this matter as it is a national tax. Like you state I am not a tax advisor.