Question Details

Jim, Other/Just Looking in Severna Park, MD

I sold my home this year via a short sale, will I have to pay taxes on the amount when I recieve the 1099?

Asked by Jim, Severna Park, MD Wed Nov 26, 2008

I sold my home in Florida back in Feb via short sale. I signed a promissory note for 20k and I've been paying it. I know I'll recieve a 1099 for the amount the mortgage company lost. Will I have to pay additonal taxes as income? I have no assets and I normally do my taxes myself.

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1 vote Thank Flag Link Wed Nov 26, 2008
You need to talk to a CPA. There are specific guidelines on what is taxable.The other issue you have is it depends what was negotiated when you signed off on the short sale. How it was recorded, what terms you and lender agreed.

To other people thinking of a short sale, it is crazy to conduct a short sale and not know the after sale implications on your credit and taxes.
0 votes Thank Flag Link Thu Nov 27, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
if the debt was forgotten by the bank and was your primary home the answer is NO, but if this home was your secondary or investment then Yes. I suggest that you consult with a tax expert when it comes to this situation because everyone will have a diffent oppinion and answer to your question.
Hope this Helps!!! :-)
0 votes Thank Flag Link Wed Nov 26, 2008
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