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Answers (5)
- Yanni Raz, "yanniraz1"
- Contributions:75
Sellers normally will get 1099 for the short sale, but in some cases they will not send you anything.
You need to negotiate with the bank and they can and will understand you depends on the situation.
Good Luck.
http://www.homesinsale.com
You need to negotiate with the bank and they can and will understand you depends on the situation.
Good Luck.
http://www.homesinsale.com
- Seth Miller, "MyRealEstatePro.net"
- Contributions:103
Talk with a certified Tax consultant or CPA that is qualified to answer this, but I know there is a way to have it forgiven even before the act went in, where you just had to prove insolvency at the time of the short sale to get it knocked off.
- Michael Emery, "MikeEmery"
- Contributions:7278
Link to the IRS website. Lenders are required to provide the homeowner with a 1099 form and will report that income to the IRS. However you may be eligible to have the money forgiven.
Mortgage Forgiveness Debt Relief Act
Mortgage Forgiveness Debt Relief Act
- Guy Ghanem
- Contributions:68
Linda is right, you definitely need to consult a CPA or the IRS.
All sellers are going to get a 1099C. It's almost standard issue from what I've seen, but if the property in question is the primary residence, then the mtg. debt relief act will come into play.
From what I've read:
Deficiency tax forgiven up to $2 million per loan.
$1 million per married person filing separately.
Sellers will pay 2nd. mtg. deficiency tax if applicable.
All sellers are going to get a 1099C. It's almost standard issue from what I've seen, but if the property in question is the primary residence, then the mtg. debt relief act will come into play.
From what I've read:
Deficiency tax forgiven up to $2 million per loan.
$1 million per married person filing separately.
Sellers will pay 2nd. mtg. deficiency tax if applicable.
- Linda Bagley, "Linda M. Bagley"
- Contributions:390
Yes! 1099C and the difference is stated as income. This is not always the case and IRS addresses it on their web site
Look for "The Mortgage Forgivness Debt Releif Act and Debt Cancellation".
Also look at IRS Form 982, which may be a way of forgiving the debt.
I am not a CPA, so your clients mUST talk to a CPA, or IRS before they do a Short Sale.
Good luck,
Linda
Look for "The Mortgage Forgivness Debt Releif Act and Debt Cancellation".
Also look at IRS Form 982, which may be a way of forgiving the debt.
I am not a CPA, so your clients mUST talk to a CPA, or IRS before they do a Short Sale.
Good luck,
Linda
Are sellers still being 1099'd for the difference owed in a short sale by bank?
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