Well Cj as said check with your accountant and lender as to your exact situation. However, if you read the law it says you will not receive a 1099 if you do a workout with your lender and refinance. In other words you owe $160,000 and the bank lets you refinance for $140,000. You do not receive a 1099 for the $20,000. You can check the law here -
http://www.irs.gov/individuals/article/0,,id=179414,00.html
Cindy Knight
Realty Executives e-Group
info@edandcindyknight.com
- Tue Jul 8 2008, 20:59