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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10104
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I short saled an investment property. I wonder what the tax

Customer Question

I short saled an investment property. I wonder what the tax implications are? The mortgage was originally $93,000. The short sale was $43,000.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,
There will be a couple of main implications
(1) you'll get a 1099-c for the COD (cancellation of debt) income ...IRS taxes money borrowed but not paid back as a net increase in wealth (income), and
(2) a short sale is deemed a sale for tax purposes ... So you'll have either a capital gain or loss on that deemed sale (likely a loss if it was a short sale).
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Let me know if you have questions ...
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Lane
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Let me know if you have questions...
Lane
Expert:  Lane replied 1 year ago.
Hi
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Just checking back in to see if you saw my answer.
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If you'd like to work through this on a phone consult let me know.
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But the bot***** *****ne is that you MAY have a 1099-C (cancellation of debt income) and that you MAY have a loss to take from the 1099-A.
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Let me know if you need more here.
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But if this HAS helped, a positive rating (by clicking or touching the stars or smileys on your screen) … is thanks enough! … That’s how we’re credited for the work here.
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Thanks, ***** ***** me know...
Lane
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