How much taxes on a 1099?
I paid 180000 with 65000 down in 2006. Now the condo by the beach is worth about 75000 according
to the dade tax bill i received. I have lost my down payment and i have lost 40000 additional to that, if
i do a shortsale. However, i will not do a short sale unless i have no other way out, being laid off
does not help. Anyways If i sell my condo for 75K, which is a 105000 personal loss.
The shortsale would be 40K short of the loan.
How much will my 1099 tax i owe be? Does anyone know this?
No i don't want an attorney, this is just a question. Yes i live in my condo.
Hi Orlando,
The first thing to determine is whether you can do a short sale.
Just becuse a property is "under water" does not automatically qualify it for a short sale.
At the end of a sale, the bank may report the "short" as unearned income to you, but you don't necessarily owe the tax on it. Part of the Mortgage Forgiveness Debt Relief Act provided for this exemption.
Depending on the bank, you may receive a "Deficiency Judgment" for the outstanding balance.
What I'm trying to communcate is that this is a complex process requiring knowledgeable proefessionals on your side. Simply making your determination based on a possible IRS 1099 reporting may need much more consideration.
Please visit my website at http://www.PeaceofMindinParadise.com for more information.
Patrick Casey, CDPE (Certified Distressed Property Expert)
MW & Associates
You dont need an attorney, you need a CPA. The only way taxes can be figured on a loss is by a CPA looking at your tax bracket. You may qualify for paying no taxes at all on a short sale loss.
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