3 Responses to “Is foreclosure debt relief still taxed or not?”
v b on
January 21st, 2010 5:45 pm
It passed.
Criteria:
Cancelled in 2007,8,9 only.
Taxpayer not in bankruptcy.
Lived in/Owned it for 2 years as main home.
Debt less than $2Million.
Money was only from buying, building or improving home.
(No cashouts).
Any money not included in income is deducted from basis of house (but not below zero).
See form 982. (If you don’t use the form, it’s considered other income.)
patrick on
January 21st, 2010 8:46 pm
Mortgage foreclosure is still considered to be taxable by the IRS.
It passed.
Criteria:
Cancelled in 2007,8,9 only.
Taxpayer not in bankruptcy.
Lived in/Owned it for 2 years as main home.
Debt less than $2Million.
Money was only from buying, building or improving home.
(No cashouts).
Any money not included in income is deducted from basis of house (but not below zero).
See form 982. (If you don’t use the form, it’s considered other income.)
Mortgage foreclosure is still considered to be taxable by the IRS.
See this link.