i sold my house last January did not make a profit had to short sale do i owe any taxes?

Answer 1

The capital gains tax rule is, if you used the house as your primary residence for 2 of the last 5 years prior to sale, you can make $250,000 in capital gains (500,000 for a married couple) and not pay capital gains taxes on it.

If this was a rental property, I do not know the rules. If it was your personal home and you lived in it for two years and did not make a profit, you won't owe taxes.

Answer 2

Possibly.

If there was a Cancellation of Debt component of the short sale, you'll receive a Form 1099C from the lender. That will be taxed as ordinary income to you unless you were "insolvent" at the time of the COD.

Most folks interpret insolvency as going bankrupt. That is true, but under the COD rules you are considered insolvent if your liabilities exceed your assets when the debt is cancelled. That's often the case and no tax liability accrues if you are insolvent.

The other consideration is the normal gain on sale. Just because you had a short sale doesn't mean that you didn't have any gain. There are lots of short sales with substantial gain due to lots of cash-out re-fis. The usual rules on the gain apply, i.e. excluded it if you can (2 of 5 rule on principal residence) and pay tax if you can't.

Answer 3

assuming that the residence was a rental property and you have filed a schedule e (rental income tax form) in previous years the sale of the rental property would be reportable to the irs .in addition to being reportable a landlord who sells a rental property must recapture all section 1245 and 1250 depreciation taken in ALL prior years, most times this will result in a capital gain and tax would be owed on these gains (subject to some adjustments )but (if the home was a personal residence (not rented out ) and you sold for less than your adjusted cost basis ( initial cost plus the cost of improvements and certain allowable expenses ) you would owe no income tax on your return.... (but if you used it as your primary residence and owned for at least two years and lived in for two years) the sale of your main home would not be taxable nor is it required to be reported anywhere on your tax return.... if you owned and lived in the home for less than two years a prorated portion of any capital gain would be taxable if an exception does not apply. i am not sure what you mean by "short sale" short sale generally would relate to sales of securities that are sold at a loss in certain situations.

Answer 4

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