Posted on: 23rd Jan, 2011 11:43 am
Ok I have a tax question! The deed in lieu was accepted and the mortgage company released me of my mortgage (I have the papers signed and dated in Dec. 2010), my question is when will this affect my taxes? Will I have to claim it this year or in the coming year? The property wasn't recorded till Jan 2011!
When will this affect me?????
Thank you!
When will this affect me?????
Thank you!
hi drifter,
after a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the property sale. this will be considered as your income and you will have to mention it while filing your taxes. however, depending upon the mortgage debt relief act, you may not be liable for paying off the taxes on the forgiven deficient balance.
thanks
after a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the property sale. this will be considered as your income and you will have to mention it while filing your taxes. however, depending upon the mortgage debt relief act, you may not be liable for paying off the taxes on the forgiven deficient balance.
thanks
Jameshogg,
Thank you for your input, I do understand this, but I was just wondering if it was going to affect me this year or next. But whichever year it is, I have to wait for the 1099 to be sent to me. I just wondered which year it would be since they signed the papers in Dec. but in Jan. it was recorded in my county.
Thank you for your input, I do understand this, but I was just wondering if it was going to affect me this year or next. But whichever year it is, I have to wait for the 1099 to be sent to me. I just wondered which year it would be since they signed the papers in Dec. but in Jan. it was recorded in my county.
2011
Thank you ki