Replies to This Discussion

Permalink Reply by Paul Jones on January 17, 2012 at 12:08am

my guess is that it goes by closing date of home. my short sale agreement was in december of 2010 but it closed in january and my 1099c is going to be for 2011. 

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Permalink Reply by Harry Clay on January 17, 2012 at 1:28am

I would say the original date of the NOD, or trustee sale that has been postponed, is irrelevant.

There has been no debt forgiveness until the transaction has recorded, & the final closing HUD has been accepted by the lender.

If that recording date falls in Jan of 2013...the seller is going to see their 1099 arrive around the beginning of Feb, in 2014.

And while I certainly respect Wendy's opinions, I know of plenty of folks here in CA who are not necessarily insolvent, but are still seeking to accomplish short sales.

These people will be severely impacted negatively if the Mortgage Forgiveness Debt Relief Act is allowed to expire, when we've barely worked through 50% of the defaulting inventory.

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Permalink Reply by Kevin - Greenville, SC on January 17, 2012 at 1:41am

Home Foreclosure and Debt Cancellation -

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.irs.gov/individuals/article/0,,id=179414,00.html

http://taxhelponline.com/resources-and-publications/research-report...

http://www.realestateinvestingtax.com/shortsale.shtml

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Permalink Reply by Bryant Tutas on January 17, 2012 at 6:51am

This is a taxable event. Therefore the event has to take place in the tax year. The transaction has to be closed in 2012. The latest date on the closing HUD would need to be 12-31-2012.

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Permalink Reply by Paul Jones on January 17, 2012 at 8:40am

exactly. it's being talked about in this thread but very odd that no discussion in the news. this is huge yet not a peep about it anywhere. i actually mentioned it in another post and thats probably the only reason its even being discussed here.

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Permalink Reply by Eric Mieles on January 17, 2012 at 8:52am

Actually PauL It had hit me and I did a search past Christmas and didn't see anything on it. So I decided to get a feel for whT the community was thinking as well as get some insight on what changes some might make in there business.

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Permalink Reply by Kimberley Kelly on January 17, 2012 at 10:07am

Hope it gets extended.  Otherwise..more foreclosures are coming here in Southern California.  Riverside County where Palm Springs and La Quinta are located was smashed with the housing crash.  We're finally seeing some stability..now is not the time to cut any type of help for people with underwater mortgages.  Fingers crossed.

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