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  • Joshua Gayman September 11, 2011 at 7:40pm
    I am guessing this is a Chase deal where the sellers are getting the credit from their lender? Tax consequences depend on if they are going to get a 1099 or not. If they are, then they are good on the deficiency, but I am not sure about taxes. I would ask a CPA about that. I am curious to find out tho, I hadn't thought of that on those Chase deals..
  • Smitty September 10, 2011 at 11:15am
    I believe it IS taxable, but I agree with Bryant and Jeff..an accountant needs to verify.
  • Bryant Tutas September 9, 2011 at 12:57pm
    That's a good question. My guess would be that it is treated as income. They need to speak with a tax professional.
    • Jeff Payne > Bryant Tutas September 10, 2011 at 3:03am
      Bryant, I agree, they need to talk to a tax professional about this.  Even with an investment property, it is not automatic that there are taxes owed from the short sale.  My non legal opinion is that the 1099 amount is based on the difference between the amount owed and the NET amount the bank recieves so in short, yes that 20,000 would be included
  • sarah harley September 9, 2011 at 12:08pm
    Sorry I meant incentive not concession:)
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