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I short saled an investment property. I wonder what the tax

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implications are? The mortgage was...
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: 2 years ago.Category: Tax
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Answered in 7 minutes by:
8/3/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,855
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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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).
.
Let me know if you have questions ...
.
Lane
.
Let me know if you have questions...
Lane
Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Hi
.
Just checking back in to see if you saw my answer.
...
If you'd like to work through this on a phone consult let me know.
...
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.
...
Let me know if you need more here.
...
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.
...
Thanks, ***** ***** me know...
Lane
.
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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,855
12,855 Satisfied Customers
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