Re: Clarification on 1099
Posted by NJD on July 07, 2007 at 11:34:48:
In Reply to: Re: Clarification on 1099
Posted by susie on July 05, 2007 at 10:37:58:
No, Florida is not. Depending on your financial health, and other assets, the lender may not forgive the debt.. but instead agree to release its lien permitting the short sale, but require you continue paying the note as unsecured. Keep paying and there is no debt forgiveness and no tax event.
However, if you are insolvent at the instant the debt is forgiven, that 'income' arising from forgiven debt may be totally or substantially exempt from tax.
If you would like the opinion or services of a CPA whose practice includes the financially distressed, email me.
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