Posted by B.L.Renfrow on July 08, 2003 at 24:40:39:
I am no tax expert, but in general, it works like this:
Say a lender is owed $100k. They agree to a short sale for $60k. The $40k difference would be considered taxable income to the borrower and they would receive a 1099 from the lender reflecting that.
Of course, the best recommendation is to advise the borrower/seller to obtain professional advice from their own accountant and/or lawyer.
Brian (NY)
Short Sale Tax Implications to Seller - Posted by Seth (NYC)
Posted by Seth (NYC) on July 07, 2003 at 07:19:52:
Hi All,
If you do a short sale and:
A)Take the property from the owner
B)Discount the mortgage, and
C)Flip it for a profit…
What are the tax implications for:
- The person you took (took = lack of a better word) the house from
- You
- The person you’re buying it from.
I heard a rumor that the person that “gave” you the house has to pay taxes on it. Is that correct? Any help would be greatly appreciated. Thank you.
-Seth (NYC)