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Was the exemption sales of your home extended past2014 or do…

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Was the exemption for short...
Was the exemption for short sales of your home extended past2014 or do you have to pay taxes on that cancellation of debt?
Submitted: 2 years ago.Category: Tax
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2/18/2016
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,983
Experience: IRS licensed Enrolled Agent and tax instructor
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Hi. My name is ***** ***** I will be happy to help you.

The mortgage forgiveness Debt Relief act of 2007 was extended through 2014. In February last year the congress introduced a new bill Mortgage Forgiveness Tax Relief Act of 2015 but the house didn't voted on it yet. If they eventually do and it passes, they may apply it retroactively.

You can monitor it here: https://www.congress.gov/bill/114th-congress/house-bill/1002/all-actions

Unfortunately, as it stands not, 1099C from short sale of your primary residence is considered a taxable income unless you can proof insolvency (your total assets are less than your total liabilities)

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Tax Professional: emc011075, Tax adviser replied 2 years ago

Chris, I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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