1099 short sale: 1099 REPORTING - IT'S THE LAW! - OR IS IT??? - 03/28/08 03:07 PM
1099 SHORT SALE REPORTING - IT'S THE LAW! - OR IS IT???
Since I have developed my SHORT SALE law practice I have a lot of clients that are in foreclosure or close to it.  They all ask me about 1099 reporting and if the bank can forgive the debt and not issue a 1099.  Lots of blogs say that plenty of banks don't issue 1099's on forgiven debt. Others say that the law is that if the lender does not report, it is in trouble with the law. The General Instructions from the IRS applies penalties for not filing informational … (44 comments)

1099 short sale: MORTGAGE FORGIVENESS ACT 2007 - HUGE BENEFIT TO SHORT SELLERS!!!! - 12/22/07 01:01 AM
On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.
For those of you that aren't up to speed on the downside of a short sale, if the bank lends you $100 and you end up only having to pay back $75, then by keeping the $25 you have to declare that $25 as ordinary income.  You see, borrowing money is not taxable as income.  But if you don't have to pay it back, then it is no longer a loan, and instead it is income, just as if you (oh my gosh!) … (2 comments)

1099 short sale: MORTGAGE FORGIVENESS ACT 2007 - HUGE BENEFIT TO SHORT SELLERS!!!! - 12/22/07 01:00 AM
On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.
For those of you that aren't up to speed on the downside of a short sale, if the bank lends you $100 and you end up only having to pay back $75, then by keeping the $25 you have to declare that $25 as ordinary income.  You see, borrowing money is not taxable as income.  But if you don't have to pay it back, then it is no longer a loan, and instead it is income, just as if you (oh my gosh!) … (3 comments)

1099 short sale: MORTGAGE FORGIVENESS ACT 2007 - HUGE BENEFIT TO SHORT SELLERS!!!! - 12/21/07 11:55 PM
On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.
For those of you that aren't up to speed on the downside of a short sale, if the bank lends you $100 and you end up only having to pay back $75, then by keeping the $25 you have to declare that $25 as ordinary income.  You see, borrowing money is not taxable as income.  But if you don't have to pay it back, then it is no longer a loan, and instead it is income, just as if you (oh my gosh!) … (12 comments)

1099 short sale: MORTGAGE FORGIVENESS ACT 2007 - HUGE BENEFIT TO SHORT SELLERS!!!! - 12/21/07 11:54 PM
On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.
For those of you that aren't up to speed on the downside of a short sale, if the bank lends you $100 and you end up only having to pay back $75, then by keeping the $25 you have to declare that $25 as ordinary income.  You see, borrowing money is not taxable as income.  But if you don't have to pay it back, then it is no longer a loan, and instead it is income, just as if you (oh my gosh!) … (0 comments)

1099 short sale: MORTGAGE FORGIVENESS ACT 2007 - HUGE BENEFIT TO SHORT SELLERS!!!! - 12/21/07 11:53 PM
On Thursday the President signed into law - effective New Years Day, the Mortgage Forgiveness Debt Relief Act of 2007.
For those of you that aren't up to speed on the downside of a short sale, if the bank lends you $100 and you end up only having to pay back $75, then by keeping the $25 you have to declare that $25 as ordinary income.  You see, borrowing money is not taxable as income.  But if you don't have to pay it back, then it is no longer a loan, and instead it is income, just as if you (oh my gosh!) … (0 comments)

 
Richard Zaretsky, Florida Real Estate Attorney (THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY) Rainmaker large

Richard Zaretsky

Florida Real Estate Attorney

West Palm Beach, FL

More about me…

THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

Address: 1615 Forum Place, Suite 3A, West Palm Beach, Fl, 33401

Office: 5616896660 x 107

Mobile: (561) 329-2279

Email Me

Legal true life experiences, general observations and commentaries for Realtors, Lawyers and Mortgage Brokers - also see our Palm Beach County Short Sales group blog. var _clustrmaps = {'url' : 'http://activerain.com/rpzaretsky', 'user' : 949532, 'server' : '3', 'id' : 'clustrmaps-widget', 'version' : 1, 'date' : '2011-11-03', 'lang' : 'en', 'corners' : 'square' };(function (){ var s = document.createElement('script'); s.type = 'text/javascript'; s.async = true; s.src = 'http://www3.clustrmaps.com/counter/map.js'; var x = document.getElementsByTagName('script')[0]; x.parentNode.insertBefore(s, x);})();


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