Discussion:1099A vs 1099C
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Discussion Forum Index --> Advanced Tax Questions --> 1099A vs 1099C
Discussion Forum Index --> Tax Questions --> 1099A vs 1099C
Rapido tax (talk|edits) said: | 20 February 2008 |
| I have a client who is about to loose his house. Does it make a difference if he does a short sale or let the bank take it. The property is now worth $200,000 less than his loan. Is there a provision where he does not have to report the difference as income? Will being current on his mortgage until the short-sale or foreclosure matter? He lives in CA, and wants to know if he should pay this month anyway. | |
| 20 February 2008 | |
| The rules in California are somewhat unique. If this is a purchase money mortgage, unless this is a VA or FHA loan, the property is treated as being sold for the balance on the mortgage, and there would be no debt cancellation income. | |
| 5 March 2008 | |
| Dude! Are you sure? Yes. CA has anti-defeciency law. But Bro that will be only for first and refi with the same company.
So yes on debt cancellation. | |
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