2007-12-13 06:37:00 · 3 answers · asked by alen m 1 in Business & Finance ➔ Taxes ➔ United States
It depends.
If you had a recourse loan, you still owe the difference between what the house sold for and what you still owed the bank. If you do not make payment arrangements with the bank, they can issue you a 1099-C for the cancelled debt. Unless you are insolvent or in bankruptcy, this is counted as "other income" and is taxable.
2007-12-13 06:48:08 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Generally yes, it's taxable income. If you were insolvent or bankrupt at the time, you might be able to avoid having to pay the tax.
2007-12-13 14:09:21 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Yes, 1099 income must be reported. You can get more information from the irs website: www.irs.gov
2007-12-13 06:40:32 · answer #3 · answered by jwishz 7 · 0⤊ 1⤋