Taxes on Short Sale
This is an alert on home sellers.As I talked to my CPA. If you have more than one home. On your primary home IRS forgives up $250,000 if single or $500,000 if a couple if you sell your property as a short sale., lose your home or goes into foreclosures you will pay a percent on the taxes on the difference of what you owe and what the home sells.
For example if you owe $255,000 and the home sells for $70,000 you will be paying taxes on $185,000. Bank are sending 1099 to the IRS for their loss.
So make sure you talked to your tax account before considering doing a short sale. Don't get caught up on paying a large amount of taxes.