I just heard from my husband that the forgiveness bill of 2013 was not extended I am working with two short sales both were included in a bankruptcy my question is will these two home owners be responsible for paying tax on the difference between sales price and what was owed?
Tags:
They will receive a 1099. Taxes may or may not be owed depending on their financial situation. A lot of folks who have done a short sale can show insolvency on day of sale. They need to speak to a tax professional.
Bryant, I think you missed the BK part. Reta, have them talk to a CPA, but IF the debts were discharged in BK, there will be no tax for forgiven debt (the debt was discharged, therefore there was no "forgiveness").
© 2024 Created by Short Sale Superstars LLC. Powered by
Short Sale Superstars, LLC and www.ShortSaleSuperstars.com does not endorse the real estate agents, loan officers, attorneys, real estate brokers and other participants listed on this site. These real estate profiles, blogs, blog entries and forums are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a short sale. Short Sale Superstars, LLC takes no responsibility for the content on these pages that are written by the members of this community.