Tax Consequences of Short Sales Explained
- Jul 23
- 1 min read
Special Episode 4, Short 6
A short sale may lead to tax consequences when the lender cancels part of the remaining debt after the sale is completed.
In such cases, the forgiven amount can be reported to the homeowner through a 1099-C form, which treats the canceled debt as taxable income.
This can create an unexpected tax obligation depending on the financial situation and how much debt was forgiven during the transaction.
WATCH VIDEO:
Contact Newport Beach Real Estate Attorneys today -- go to NewportBeachRealEstateAttorney.com or call (800) 233-8521 for a complimentary phone consultation.
Comments