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 Posted: Tue Apr 29, 2008 9:56 am Subject: short sale of 2nd investment house |
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We purchased a 2nd home as an investment two years ago and are now ready to short sale.
Will we have to pay taxes on debt forgiven by lenders as this is not our principal residence?
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ahsmrbiology
Joined: 29 Apr 2008
Posts: 2
Debtcc Points: 33
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| Posted: Tue Apr 29, 2008 9:59 am Subject: |
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A very good question - I am not an expert in this area, but hang tight, and one of our members with more experience in the tax implications of short sale will be along to help.
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SUEBEEHONEY70
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| Posted: Sat May 03, 2008 7:34 am Subject: short sale investment tax question |
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That is a good question and a very tricky one. It really all depends on your situation. I sold my home through a short sale last year and ended up with no tax implications. BUT, this was my primary home and I was covered 2 ways-with the Mortgage Forgiveness Act and insolvency.
Honestly, best bet is to consult a tax professional on this one because there are sooo many loopholes and it is very confusing.
Make sure to ask them about insolvency. That may help you.
Good luck!
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girlndebt
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