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Short sale tax question

Date: Wed, 02/06/2008 - 10:53
Submitted by girlndebt on Wed, 02/06/2008 - 10:53
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I know the Mortgage Relief Act was passed which is awesome! That will give much relief to those of us who went thru a short sale or foreclosure. My question is-are lenders still suppose to send out 1099c's? I closed in October '07 and really want to do my taxes but not sure if I need to wait for that.I already got my 1098 from them but that was it. I called the lender to inquire about the 1099-what a joke. They knew nothing and told me to call the IRS. Yeah, OK.


I did a short sale in November 2007 and I received
a 1099 C after I had already filed my taxes.

When I called the IRS they said it is counted
as income the money that was forgiven, in my case over
$20,000. Well I didn't even make that much last years
so I may just see what they do next. I am not doing
an amended return yet.

I don't think they should be albe to count it as
income when I didn't earn any of it.

Oh well, that is just my opinion, if they forgave
any of your loan they should have sent a 1099 C

I am from Florida.


Submitted by on Wed, 02/06/2008 - 21:52

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I am from Florida too! I live in South Fl.
I was worrying so much about this yesterday, I called the IRS last night and wasted all night on the phone asking questions. I am like you, last year we had a very bad year and did not make much. My loan was for 300K-we sold for 275k.I was told to call back AFTER 2/15 if I still didn't get a 1099c but there is a chance I may not be getting one at all??? I can't seem to get any straight answers. I am to the point that I need my money, I need to file my taxes to get it. I am making one more call tonight to the lender and if I get the same stupid answer-I am just documenting who I spoke to and filing. I am sure they will have answers quickly when they go to audit me!

It was funny, when I called, no mention of the law that was just passed to help us. I had to mention it.

Good luck with your situation! This stinks.


Submitted by girlndebt on Thu, 02/07/2008 - 04:22

girlndebt

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Yup, I am gonna file. I have a feeling they are not gonna send one now. Just read somewhere that some of these lenders are being sneaky and turning over the deficiency amounts to collections.Why do I have a feeling mine might be one of them??? Thanks for the advice.If it does happen to come, you are right, file an amended return.


Submitted by girlndebt on Fri, 02/08/2008 - 08:31

girlndebt

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