deed in lieu

Hi Donnamlucas,

Welcome to the forum.

If you go for a deed in lieu on your rental house, you may have to pay the applicable deed tax as part of the unpaid debt. To know more on tax implication of deed in lieu, you may refer to http://www.mortgagefit.com/deed-lieu.html

we have a balance of 247.900 how do you figue the taxes on this amount

Hi Donna,

I've replied to a similar query in the forum. To view my reply, you can refer to http://www.mortgagefit.com/deedinlieu/taxes.html

Donnamlucas,

"my husband and I have a rental house in rhode island na di am going to do a ded in lieu will w ehave to apy taxes to the irs"

After accepting the house through a deed in lieu the lender would send you a 1099 form.

Debt which is forgiven is considered as income and the borrower will owe taxes to IRS on the amount which has been forgiven by the lender.

Miller

Hi Donna,

"we have a balance of 247.900 how do you figue the taxes on this amount"

You will have to pay taxes (if any) on cancellation of debt income.

Please go through the following page to know how it is calculated: What is COD income, and how is it calculated?