Real Estate Law
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Can you provide me a bit more detail? Is this your residence that we're talking about? Thanks.
Thanks for following up. If you walk away, you won't be taxed at all. Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, which has now been extended through the end of 2016, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions.
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Hi .... Your question is showing up on my screen indicating you have a follow up question and that you are waiting on my response. I don't see any follow up so if it somehow got lost, would you mind re-posting it? Thank you!