I noticed that alot of people are sending out false information about 1099s and the amount owed on foreclosures after it sells for less. If you're unaware, George Bush passed a law on December 20th that was on the front page of almost every paper stating that debt owed on a short sale or a foreclosure and a 1099 will not be owed because of the housing crisis until December 31, 2009. Tell me if I'm wrong, positive answers only please.
2007-12-28 12:33:48 · 1 answers · asked by Jamie 7 in Business & Finance ➔ Other - Business & Finance
The old tax law counts cancelled mortgage debt on primary residences as taxable income. The new law provides temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income. It does not cover "debt owed on a short sale or a foreclosure", which is a different matter. For example, if you owed $100,000 on your house, it was foreclosed and it was sold for $80,000, you would be taxed on the $20,000 difference under the old laws. Now, you will not be taxed on the $20,000.
2007-12-28 12:55:28 · answer #1 · answered by oakhill 6 · 0⤊ 0⤋