Skip to main content
index page

short sale of 2nd investment house

Submitted by on Tue, 04/29/2008 - 09:56
Posts: 202330
Credits:
[Donate]

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?


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!


Submitted by girlndebt on Sat, 05/03/2008 - 07:34

girlndebt

( Posts: 151 | Credits: )