Zillow Advice: Rentals - ON A SHORT SALE FOR A NON OWNER OCCUPIED PROPERTY (SINGLE FAMILY), WHAT ARE THE TAX CONSEQUENCES? I http://www.zillow.com/advice-thread/ON-A-SHORT-SALE-FOR-A-NON-OWNER-OCCUPIED-PROPERTY-SINGLE-FAMILY-WHAT-ARE-THE-TAX-CONSEQUENCES-I/450521/ Zillow Advice | Zillow Real Estate Check with your CPA. The ... http://www.zillow.com/advice-thread/ON-A-SHORT-SALE-FOR-A-NON-OWNER-OCCUPIED-PROPERTY-SINGLE-FAMILY-WHAT-ARE-THE-TAX-CONSEQUENCES-I/450521/ Check with your CPA. The tax laws are different in every state. Wed, 11 Jul 2012 04:01:00 GMT http://www.zillow.com/advice-thread/ON-A-SHORT-SALE-FOR-A-NON-OWNER-OCCUPIED-PROPERTY-SINGLE-FAMILY-WHAT-ARE-THE-TAX-CONSEQUENCES-I/450521/ 2012-07-11T04:01:00Z According to the IRS:"If ... http://www.zillow.com/advice-thread/ON-A-SHORT-SALE-FOR-A-NON-OWNER-OCCUPIED-PROPERTY-SINGLE-FAMILY-WHAT-ARE-THE-TAX-CONSEQUENCES-I/450521/ According to the IRS:<br/><br/>"If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable."<br/><br/>It goes on to say:<br/><br/>"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."<br/><br/><a href="http://www.irs.gov/individuals/article/0,,id=179414,00.html/" rel="nofollow">http://www.irs.gov/individuals/article/0,,id=179414,00.html/</a> Wed, 11 Jul 2012 02:57:00 GMT http://www.zillow.com/advice-thread/ON-A-SHORT-SALE-FOR-A-NON-OWNER-OCCUPIED-PROPERTY-SINGLE-FAMILY-WHAT-ARE-THE-TAX-CONSEQUENCES-I/450521/ 2012-07-11T02:57:00Z