Re: Clarification on 1099
Posted by Larry Ludwick on August 06, 2007 at 15:00:49:
In Reply to: Re: Clarification on 1099
Posted by Shelley Koss on August 06, 2007 at 11:37:22:
I will not dispute a CPA on a tax matter and the IRS docs make it clear that a loss on your primary home is not deductible. But things are rarely as bad as they seem. The gain provided by debt forgiveness may be excluded if the individual is either in bankruptcy or is insolvent. It should not be hard to show that a person is insolvent if they have gotten to the point of having to sell their primary residence for less than they owe -- after all, if they had assets other than their home the lender would probably insist that they be liquidated before accepting the short sale. An investment home is another case all together. In any, and all, cases this is why I always tell people to consult a tax professional -- preferably a CPA. Not a Realtor, and not an internet discussion group. The IRS is an unforgiving bunch and you need professional help when dealing with them.
Larry Ludwick
Realtor -- Sales Associate
CENTURY 21 Beggins
Apollo Beach, Florida
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