A word of caution to those of you who are facing foreclosure negotiating a short sale or a loan modification..The 2007 Mortgage Forgiveness Act DOES NOT cover the debt on your personal residence that was not for the acquisition or improvement of your pers...
March 11
Bymyers: A word of caution to those of you who are facing foreclosure negotiating a short sale or a loan modification..The 2007 mortgage forgiveness act DOES NOT cover the debt on your personal residence that was not for the acquisition or improvement of your pers... moreA word of caution to those of you who are facing foreclosure negotiating a short sale or a loan modification..The 2007 mortgage forgiveness act DOES NOT cover the debt on your personal residence that was not for the acquisition or improvement of your personal residence. If you have debt on your home that exceeds acquisition or improvement of your home, and it was cancelled due to foreclosure, short sale or a part of a loan modification it MAY be income and taxable!
See me if this is your case, there may be another way to exclude this from income...had a very upset couple today who were audited and their preparer erroneously excluded debt and now they have a VERY LARGE tax bill...I may be able to help them...But the best advice I can give is to see your tax pro BEFORE short sale, modification, or foreclosure so that you will be fully aware of the tax consequences of a foreclosure, short sale or loan modification.
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