Updated question. 1099 anyone knows what the percentage is?
I cannot do a short sale unless i know how much approximately the 1099 taxes will be on a
40000 loss. If it's 1000 dollars that i would owe for 1099, i could come up with that,
If it's more than that, i can't. (No work).
Condo was 180000 dollars with 65K down that i lost. The loan is about 120000.
So if a buyer wants to pay 80000 or less, i am 40K short on the loan.
So, if there is any real estate tax people out there, anyone has a tip on how much i would owe
1099 on a 40K loss? REALLY I NEED TO KNOW BEFORE Hand.
Orlando:
I learned that the amount forgiven by the lender, say $40K as you suggested, will be reported as income to the IRS. That would mean your taxable income when you file is $40,000 + whatever wages you earned in 2009. If you earned $35,000 in 2009 and add $40K from the bank short sale, your taxable income will be $75,000 for 2009. What happens after that point is up to your accountant and the current tax law to determine what your tax debt will be.
Orlando it depends on your income. Your best answer to this would be a CPA or the IRS helpline.
IRS help line is 1-800-829-1040 you can get schedule C & E help there so they should be able to help.
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