How long do I have to live in my rental before I can give it back to the bank and not face 1099 issues?

dgadley
dgadley
Home Seller
93728

I own several rentals that are worth less than the equity I have in them. I understand I have to pay taxes on the difference between the equity and how much less the house sells for once it is foreclosed. Can I move into one of my rental and then go onto foreclosure and save myself taxes from the 1099 ?

Mon Dec 15 2008, 10:00 - Foreclosure in 93728 - 1 answer
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Blaison Samuel
Blaison Samuel
Agent
Union City, CA
FIRST ANSWER

dgadley,

Primary residence is considered as you lived there for 2 years out of the last 5 years, so if you have lived there for 2 years, then moving back to your rental house may help you out but check with your attorney or CPA for any tax related issues. My suggestion would be to go for short sale rather than foreclosure to avoid foreclosure from your credit history. Contact your local realtor who has experience in doing short sale or if you would like me to refer an agent, please let me know.

Blaison Samuel
Certified Short Sale Specialist
email: blaison@blaisonsamuel.com

Mon Dec 15 2008, 10:27
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