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I read the IRS laws on 1099 the debt forgiven on a foreclosure or short. What about property tax?

Does the IRS ask for payback of those payments missed too? What happens?
  • January 30 2009 - Livermore
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Answers (1)

Official answer is the typical "check with your accountant or CPA". Having said that, my understanding from speaking with my tax professional is that property taxes are not included in the relief because it is not considered debt used to "buy, build or substantially improve the taxpayer's principal residence and secured by that residence" the verbiage used in the Act itself. I don't know that this has been challenged yet and probably will be in the tax court at some point, so you may have to wait a while for a ruling.

Good luck!
  • January 30 2009
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