Home Selling in Los Angeles>Question Details

sarah, Other/Just Looking in Los Angeles, CA

i bought the house as a primary residence, and lived in it up until a few months ago. I bought another house, that I needed for size reasons, and

Asked by sarah, Los Angeles, CA Tue Feb 23, 2010

was renting the other house out, but lost my tenant, and can't afford the house now. So pursuing short sale as I am 420K upside down. Does the fact that I don't live in the house now, make a difference with the 982 /1099c for tax implications?

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Sarah
As everyone stated this is definitely a CPA question. Also you should question and make sure you are within cap on debt forgiveness.

Good Luck!
Web Reference: http://www.di4homes.com
0 votes Thank Flag Link Sat Mar 13, 2010
Sarah, talk to an real estate atorney specializing in this area of law and also a CPA...as things seem to be changing radically -- sometimes on a daily basis in this business, I suggest you talk to both to determne what tax implications and more might have to be aware of. Rose Alain Pinel Realors
Web Reference: http://www.apr.com/rnied
0 votes Thank Flag Link Sat Mar 13, 2010
Sarah: You also need the advice of an attorney. There are much different rules for investment properties and you want to make sure that you are getting the correct answers. http://www.curtislawgroup.com gives free consultations. Good Luck
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Sat Mar 13, 2010
CPA question. Yes it does.However go to my website for more info on short Sales. You will find the answer there.
http://www.pebblesingha.com
Pebble Singha
Certified Distressed Property Expert
Web Reference: http://www.pebblesingha.com
0 votes Thank Flag Link Sat Mar 13, 2010
All tax matters are best handled by a legal advisor and CPA. Before pursuing a short sale with your lender, be careful to document the reasons for your purchase of the second home, as the lenders are on the lookout for homeowners who are "buying and dumping": purchasing while their credit is still intact with the intent to short sell or foreclose on the unwanted property after.
Deborah Bremner
REALTOR, 00588885
Certified Short Sale Professional
Certified Home Retention Specialist
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/blog
0 votes Thank Flag Link Tue Feb 23, 2010
It is best confer with CPA who has all of your financial records professional best answer all your questions.

Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 23, 2010
You have to determine what is called basis for when you moved out compared to the value now.

It may even be that you have loss on the property but owe taxes.

Get a CPA ASAP!!!
Web Reference: http://flavors.me/fredglick
0 votes Thank Flag Link Tue Feb 23, 2010
I would speak to a qualified tax professional about this matter.
0 votes Thank Flag Link Tue Feb 23, 2010
Hi Sarah, it's my belief that you must reside in the home to be able to get all the tax advantages as your principal residence. You should check with your CPA on this. The short-sale situation does not affect your tax status as the IRS is not concerned with that. You should be able to take the write off on a loss as the rental is not supplying you income. Hope this is of help to you. All the best on the short sale and make sure you have a good local Realtor for each Bank is different and it can be time consuming. I have an excellent CPA I can refer should you need one...
0 votes Thank Flag Link Tue Feb 23, 2010
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