Posted on: 28th Feb, 2012 11:49 am
I did a deed in lieu on my house last year because my husband passed away and i lost half my income and couldn't afford to keep it. I received a 1099A in the mail. Box 4 is marked and is less than the outstanding balance owed. The bank sold the house for less than I owed. I'm 68 years old and live in Arizona. Will the Mortgage Tax Relief Act protect me from having to pay taxes on the difference.
hi marionjk!
welcome to forums!
in case of a deed in lieu of foreclosure, the deficient balance resulting from the sale of the property will be forgiven by the lender. depending upon the mortgage tax relief act, you may not have to pay the taxes for the forgiven deficient balance.
feel free to ask if you've further queries.
sussane
welcome to forums!
in case of a deed in lieu of foreclosure, the deficient balance resulting from the sale of the property will be forgiven by the lender. depending upon the mortgage tax relief act, you may not have to pay the taxes for the forgiven deficient balance.
feel free to ask if you've further queries.
sussane
Welcome marionjk,
I agree with Sussane. The Mortgage Tax Relief Act is still in vogue and will protect you in case of a deed in lieu of foreclosure. You won't have to pay the taxes on the forgiven debt.
I agree with Sussane. The Mortgage Tax Relief Act is still in vogue and will protect you in case of a deed in lieu of foreclosure. You won't have to pay the taxes on the forgiven debt.