Posted on: 26th Feb, 2009 06:07 pm
I received a 1099-C for a debt cancellation on a mortgage of a house that I quit claim deeded over to my ex in 2006. My divorce decree states that she would have my name off of the loan and house with in 6 months of the divorce. From what she tells me she tried and was denied refinancing and they wouldn't put her new husband down on the loan in place of me. Am I stuck with this tax burden? If so what recourse if any do I have? Thanks!!!
hi grfunkee,
as your ex-wife didn't refinance you still remain on the mortgage. thus you need to pay the taxes on the forgiven/cancelled debt. i cannot see any other way around because the property has already been foreclosed and the deficient amount cancelled. however, you can consult an attorney and see if he can come up with any solution.
as your ex-wife didn't refinance you still remain on the mortgage. thus you need to pay the taxes on the forgiven/cancelled debt. i cannot see any other way around because the property has already been foreclosed and the deficient amount cancelled. however, you can consult an attorney and see if he can come up with any solution.