any advise on the tax consequences for short selling the rental property( this property used to be by primary and it is unfortunatly a rental)?

Asked by Losangles91325, Los Angeles County, CA Fri Jan 13, 2012

tax consequences for the rental short sale?

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Emily Knell, Agent, Huntington Beach, CA
Fri Jan 13, 2012
If you lived in the home as your primary residence for 2 out of the last 5yrs, you may be able to skate on the tax consequence under the Mortgage Debt Forgiveness Act of 2007.

If this is not the case for you and you are suffering from a financial hardship you CAN still state your case to the IRS to allow you to get protection with the Mortg. Debt Forgiveness Act.

If you end up having to deal with the tax consequence it will be on the negative balance & calculated based on your own tax rate.

I am not a CPA, please ask these questions to & consult with your accountant or tax attorney. these statements are made based on my experiences as a short sale Realtor, accounting & tax law is outside the scope of my knowledge.

Shoot me an email directly if you want to talk about this some more, I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtor
Short Sale Expert
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Fri Jan 13, 2012
I have clients that have short sold their rental property. You have to consult with your cpa or tax advisor about that. If you need short sale help, please visit http://www.short-sale-vs-foreclosure-help.com

Thanks,
Sara Mehrpouyan CDPE
Specializing in Short Sale & Foreclosure
Direct 818-903-2040
Dre License #01712757
0 votes
Walter 'Skip'…, Agent, Brea, CA
Fri Jan 13, 2012
Hi LA,
You can google the Mortgage Debt Relief Act for a general understanding of the tax issues related to the forgiveness of debt from foreclosure or short sale. I agree with the previous posts that you should seek professional tax advice. In addition to the debt forgiveness you will have capital gain/loss amounts that will need to be figured.
Good luck,
Web Reference:  http://ocnorth.com
0 votes
Richard Schu…, Agent, Los Angeles, CA
Fri Jan 13, 2012
Check my short sale resource page, then consult a tax professional


http://richardschulman.com/sellers/short-sales/


Richard Schulman
Short Sale Expert
310-482-0173
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Jan 13, 2012
When it comes to any tax related issues, it's always best to consult with your tax professional, and or tax attorney...
0 votes
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