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ON A SHORT SALE FOR A NON OWNER OCCUPIED PROPERTY (SINGLE FAMILY), WHAT ARE THE TAX CONSEQUENCES? I

  • July 10 2012 - US
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Answers (2)

Check with your CPA. The tax laws are different in every state.
  • July 10 2012
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According to the IRS:

"If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable."

It goes on to say:

"The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief."

http://www.irs.gov/individuals/article/0,,id=179414,00.html/
  • July 10 2012
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