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Short Sale IRS form 982 April 15, 2010

Posted by orlandoshortsalefl in 1099C short sale, IRS form 982, Mortgage forgiveness debt relief act, Orlando pre foreclosure, Orlando Short Sale, Orlando short sale Realtor, short sale.
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I want to let you know I am not giving you tax or legal advice. I am not an accountant or an attorney. This is my opinion as a short Sale Realtor. 

Today is tax day. If you received a 1099C today is the day to have you or your accountant file this form with your taxes. The 1099C is for debt forgiveness mainly on a short sale and the 1099A is for abandonment mainly for a foreclosure. Do not forget to file this form with your IRS taxes. 

On a short sale the lender will issue you a 1099C in most cases for your first lien. You may also get a 1099C for the second so include both. This is the balance of the debt not paid for from the short sale of your home. This is where a tax attorney or accountant comes in. They will be able to counsel you in the best way to discharge this income. 

Whatever you do, even if you don’t use an accountant or attorney do not forget to claim this amount on your taxes if applicable. Also if you do file yourself use form 982 from the IRS and follow the instructions. I tell all my clients to seek professional advice in regards to this form. You do not want to have an additional $50 or $100,000 in income. 

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation.

The above act was enacted in 2007 and currently goes to the end of 2012. I would also say to read this document if you are going to do this yourself. Remember this is your right to use this. Do not forget to include this form if you have a 1099C cancellation of debt. 

And one more disclaimer. I want to let you know I am not giving you tax or legal advice. I am not an accountant or an attorney. This is my opinion as a short sale Realtor. 

  When you hire an agent ask them to show you their approval letters or some of their closed sales. You want to have an expert on your side. Wendy and I have this and we have the documentation to back it up. Remember foreclosure is the last resort. Contact me at www.scottnwendy.com or paganorealtor@gmail.com or you can use my 24 hour recorded info hotline 1-866-647-8425 EXT 104