Roseville Short Sale FAQs-Will I Have Tax Liability?
If you’re a Roseville homeowner, considering a short sale, you are probably wondering if you will have to pay Federal or State taxes.
The Mortgage Debt Relief Act applies to people selling their primary residence as a short sale and only applies to qualified principal residence indebtedness. Qualified principal residence indebtedness is the money, up to $2,000,000, of debt incurred to acquire, construct, or substantially improve the taxpayers principle residence. Also, the debt must be secured by the residence.
Once the Roseville short sale is complete, the taxpayer will receive a 1099-C from the bank. The 1099 must be reported on your tax return. If the entire amount owing is qualified principal residence indebtedness then there will be no tax for federal or state purposes.
Before considering a Roseville short sale, it’s important to talk to a qualified CPA, real estate attorney, and Roseville short sale expert.
Roseville Short Sale FAQs-Will I Have Tax Liability?
Posted by Allan Sanchez Roseville Short Sale Agent www.AllansHomes.com
Leave a Reply