Quote:
Originally Posted by Rick Lee
That used to be the case and the defaulter got a 1099 for the amount forgiven. Imagine getting one of those for in the six figures and not knowing it was coming. I think that law was changed last year though, so that loan mods and deeds in lieu of, etc. were no longer considered taxable income.
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I guess this is the change to the tax code...
http://www.irs.gov/individuals/article/0,,id=179414,00.html
also this...
http://www.irs.gov/pub/irs-pdf/p4681.pdf
If I'm reading the irs docs correctly, abandonments (what the OP is talking about doing) have tax different treatment than simply being foreclosed on.
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Jim R.
Last edited by Jim Richards; 03-09-2009 at 02:03 PM..
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