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Short Sale On Rental Property

Having a dispute with a tenant or landlord? Rental Law discussion

Short Sale On Rental Property

Postby Travers » Sat Dec 03, 2016 11:21 pm

s About Taxes)/short sale on rental property Advertisement Expert: Vanessa D. Powell, CPA - 2/1/2011 We sold on a short sale a rental property last year. We have been forgiven the debt but we have debt cancellation forms that also show interest. What are we liable for? and how do we handle this. We had to stop making payments because of no renters and my wife got cancer. Please help.
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Short Sale On Rental Property

Postby Caddarik » Sat Dec 10, 2016 7:34 am

A short sale means that you had debt forgiven, which is considered income in the year it's forgiven.  So you'll need to report the amount shown on the 1099 as income.  Unfortunately, the IRS doesn't care why you had the debt forgiven, but they will pull your return for review if you don't include that amount.  Sadly, a lot of taxpayers have been in the same boat recently.

You may want to have your return prepared by an enrolled agent, CPA, or, at the very least, by a place like H&R block- those debt cancellation forms can get a little tricky.

I'm sorry for your difficult situation- best of luck to you and your wife.

Vanessa
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Short Sale On Rental Property

Postby Tywysog » Tue Dec 13, 2016 1:54 am

s About Taxes)/short sale on rental property Advertisement Expert: Vanessa D. Powell, CPA - 2/1/2011 We sold on a short sale a rental property last year. We have been forgiven the debt but we have debt cancellation forms that also show interest. What are we liable for? and how do we handle this. We had to stop making payments because of no renters and my wife got cancer. Please help.
Tywysog
 
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Joined: Wed Jan 08, 2014 1:24 pm


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