Off topic question about my shortsale.(taxes)
I did a shortsale on my Townhome last June (CA) and it falls under the Mortgage Forgiveness Debt Relief Act which expires at the end of this month. I have a 1099 that the IRS sent me. It's my understanding that a CPA can waive the amoujnt on this 1099. The amount is the difference from what I bought the home for and what I sold it for. 130,000 dollars. When you take a lose, it shows as taxable income. My question is: has anyone gone through this process and or how do I go about doing this? I went to an H&R Block against my better judgement and they were stupdified. They had no idea about the Relief Act as I figured. I just walked out. Anyone have a good tax person I could even be counciled by? Any help is appreciated.
If @ 1st you don't succeed, grind it, hammer it, weld it, drink a beer and try again.
Kevin, I have a great deal of tax experience, I owned and ran a tax company for 5 yrs, and am getting a masters in Tax. The 1099 you got was from the mortgage company, not the IRS. Assuming you qualify, the normal forgiveness of debt equals income doesn't apply on the forgiveness on you house. There is a specific form you have to fill out. I can recommend you to a good CPA that can do this for you. PM if you want the referral.
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