Does a short sale have tax consequences to the seller?

By
Real Estate Agent with better homes realty

A: For income tax purposes, the debt that was forgiven could be taxed as if it were income. So, if $30,000 of debt was forgiven, the seller could have to pay income taxes on that $30,000. This rule may change because of the hardships involved. An agent experienced in short sales will help make sure you are protected.

Comments (1)

Nancy Davenport
Joy Real Estate - Greer, SC
Realtor Gvl/Sptg SC

Welcome to Active Rain.  Happy blogging and I hope you enjoy this site as much as I do. I think this is a real plus in marketing yourself and getting your name out there.

Take care....Nancy Davenport Realtor

Joy Real Estate

www.upstateHUB.com

Aug 31, 2008 12:21 PM