Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Stress from Foreclosure or Short-Sale

With the real estate market crisis, more and more families have been forced into foreclosure or finding other ways, such as a short sale to eliminate their mounting debt. However, many are unaware of the tax consequences of such actions. Our goal is to ensure that you understand exactly what is involved in debt forgiveness, so that there are no unpleasant surprises when you file your taxes.

During the next few months, we’re going to teach you about The Tax Consequences of Debt Forgiveness. You will learn about:

  • The Internal Revenue Code (IRC) Section 108(a) which deals with debt forgiveness
  • The Mortgage Debt Relief Act of 2007 which may exclude you from having to pay taxes on your forgiven debt amount
  • The Emergency Economic Stabilization Act of 2008
  • IRS Form 982 – This form will be attached to your tax return7 Things You Should Know About the Tax Consequences of Debt Forgiveness
  • Filing Your Tax Form 1099-C
  • Filing Your Tax Form 1099-A
  • Filing Your 1040 Foreclosure and Short Sale Taxes

If you choose not to wait, you may also download all of this information in our FREE ebook: 7 Things You Should Know About the Tax Consequences of Debt Forgiveness.

If you have further questions about your foreclosure or short sale and how it may affect your income taxes, please contact us online or call (239) 384-9688.

-Mark

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This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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