Discussion:1098 and Short Sale on Primary Residence
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| Revision as of 15:07, 28 May 2009 Riley2 (Talk | contribs) (Payments through) ← Previous diff |
Revision as of 16:33, 29 May 2009 Mikelim (Talk | contribs) (Thank you, Riley) Next diff → |
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| {{ForumReplyPost|UserID=Riley2|Date=28 May 2009|Text=Payments through escrow are deductible. The escrow agent is acting as agent for the taxpayer.}} | {{ForumReplyPost|UserID=Riley2|Date=28 May 2009|Text=Payments through escrow are deductible. The escrow agent is acting as agent for the taxpayer.}} | ||
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| + | {{ForumReplyPost|UserID=Mikelim|Date=29 May 2009|Text=Thank you, Riley. This is what I thought.}} | ||
Revision as of 16:33, 29 May 2009
Discussion Forum Index --> Advanced Tax Questions --> 1098 and Short Sale on Primary Residence
Discussion Forum Index --> Tax Questions --> 1098 and Short Sale on Primary Residence
| 28 May 2009 | |
| I have a client who closed a short sale on his primary residence in 2008.
He received a 1099-C for approximately $150K. Based on the Homeowner Protection Act, this should be non-taxable, but reported on Form 982. He also received a 1098 from the bank for $36K in mortgage interest and $15K for property taxes paid. The catch is that he did not pay all of the mortgage interest or the property tax (a good portion was paid through the short sale escrow). Can he still deduct the full amount of the 1098 mortgage interest and property taxes even though he physically did not pay them from his own funds? Theoretically, he "paid" these through the sale proceeds - he was liable for them. My thought would be they would be fully deductible, but I can't find any authoritative guidance to tell me otherwise. Anyone else has a similar circumstance? | |
| 28 May 2009 | |
| Payments through escrow are deductible. The escrow agent is acting as agent for the taxpayer. | |
