I had a short sale last year for a triplex, hot hit with a 1099 for 125K. What can I do minimalize the loss? As a seller what can I dedact? Thank U.

Asked by Shortsale, 95051 Thu Feb 17, 2011

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6
Tina Lam, Agent, San Jose, CA
Fri Feb 18, 2011
As others have answered, tax advice should be given by only CPAs privy to your financial information. If you want to know about what can be claimed as expenses and depreciation on rental property and add to your cost basis, refer to this IRS publication here. Also here's the investment incomes and losses for all 1099 reporting.

http://www.irs.gov/pub/irs-pdf/p527.pdf
http://www.irs.gov/pub/irs-pdf/p550.pdf
Web Reference:  http://www.archershomes.com
1 vote
Gerard Carney, Agent, Spring Hill, FL
Thu Jun 16, 2011
Did you live in one of the units for at least 2 of the last five years?
0 votes
Bay_area_ll, Home Buyer, Oakland, CA
Tue Mar 29, 2011
sorry to hear this. Did a realtor advise you to do the short sale?
0 votes
Andrea Wince…, Agent, Milpitas, CA
Fri Feb 18, 2011
It is wise to seek counsel of a tax professional. You may also find the info you need directly from the IRS on the subject:
http://www.irs.gov
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Thu Feb 17, 2011
Short Sale,

Dan's right about this one. Unfortunately, you will need to consult with a qualified tax professional, CFP, CPA, tax attorney or EA/Tax preparer about this matter. However, if you want to learn more about what steps will be taken to determine the amount of "forgiveness" money that may be excluded from your gross income, the form that will be filled out is Form 982, which you can see here at http://www.irs.gov/pub/irs-pdf/f982.pdf.

According to what I've read, the exclusion appears to apply only to principal residences. Since this was a triplex (investment property) and not a single family home, this property may not qualify under the current "forgiveness" programs that will be in place for homes sold short, foreclosed, or relinquished under deed-in-lieu from 2006 through 2013. Again, however, your tax professional will know better how to resolve this matter in your best interests!

Good luck!

Sincerely,
Grace Morioka
Area Pro Realty -People's Choice
0 votes
Dan Tabit, Agent, Issaquah, WA
Thu Feb 17, 2011
Shortsale,
You will need to get your answer from an accountant. We have no way to know all of your income information nor are we licensed to give tax advice. One thing to consider, whatever taxes you owe, you don't owe the full $125k.
0 votes
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