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What are the short sale tax ramifications?

Posted on: 06th Nov, 2007 02:08 pm
I might be looking at 3 or 4 shortsales, I have gotten myself into big debt trying to avoid it, but there is no other way out, so I am so concerned about ending up oweing so much tax that I can't pay it, then have all those penalties and interest added and end up in an even worse financial situation. Do mortgage companies always 1099? My homes are in california and nevada.
Any suggestions on what to do. I recently moved to nevada, and don't know a really good accountant/tax person. I appreciate your time and imput
Hello, I had to short sale my 2nd home in AZ and I have a property in OH and my primary residence in NC. Do I have to pay the taxes on the deficient amount of the short sale property? and if I don't....can they come after my other properties in OH and NC?
Posted on: 21st Sep, 2011 10:41 am
Hi Steven,

If the lender has forgiven the deficient balance resulting from the short sale of the property, then the forgiven amount will be considered as your income and you will be liable for paying taxes. If you don't pay the deficient balance, then the lender may file a lawsuit in OH or NC and place a lien on any of those properties.

Thanks
Posted on: 21st Sep, 2011 09:56 pm
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