Posted on: 25th Nov, 2009 04:02 pm
i have a timeshare and i have been offered a warranty deed in lieu of foreclosure - will ther be tax implications???
Welcome CNL,
If you go for a deed in lieu of foreclosure, the lender would forgive the deficient amount resulting from the sale. However, he will issue a 1099 form against you. Depending upon your state laws, the taxes on this deficient balance would be forgiven by the IRS.
If you go for a deed in lieu of foreclosure, the lender would forgive the deficient amount resulting from the sale. However, he will issue a 1099 form against you. Depending upon your state laws, the taxes on this deficient balance would be forgiven by the IRS.