1099c: Can the Issuance of the 1099-c be Negotiated with the Short Sale Lender and Does It Matter? - 02/13/11 08:36 AM
Isn’t the short sale lender obligated to report canceled debt to the IRS? Isn’t the borrower obligated to report canceled debt even if they didn’t get a 1099-c?
In a short sale, the lender allows the house to sell for less than owed. The short sale acceptance letter usually specifies if the shortage is forgiven or if the lender reserves the right to pursue the borrower for the deficiency.
The vast majority of short sales I have negotiated for clients in Louisville KY result in full and final forgiveness of the shortage. The lender issues the borrower a form 1099-C. The … (1 comments)

1099c: Do I Have to Pay Taxes on a Short Sale? The 1099-C, H.R. 3648 and the Insolvency Rule - 09/18/10 05:07 PM
Three possible answers to the question: Yes, No, Maybe.
Short sale listing agents should always disclose to their clients there is a possibility they will have to pay taxes on any forgiven debt.
Sellers are strongly encouraged to consult with professional legal and tax advisers.
Realtors who help clients avoid foreclosure should be knowledgeable of tax issues related to a short sale. The Realtor should disclose and direct the sellers to ask a CPA or tax attorney about the following issues:
1. What is a 1099-c (1099 income resulting from cancellation of debt)
2. What is the mortgage forgiveness act H.R. … (3 comments)