Hello JA Guest,
Did you receive a 1099 form from the lender to report the short sale deficiency amount?
Did you receive a 1099-a form or a 1099-c form?
Also, was this short sale on your primary residence?
Hello again JA Guest,
You will not need to pay tax on this amount, but you will need to account for this form on your tax return.
You need to file Form 982 with your return and check the box on line 1e to show that this debt related to our primary residency. Then on line 2 enter the amount of the canceled debt.
If this was helpful please press the Accept button. Positive feedback is also appreciated.
Thank you JA Guest