What are the tax consequences of a foreclosure, short sale or loan modification?

March 16, 2010 By BankSlayer Leave a Comment

Yesterday the IRS paid a visit to our office to verify some information.  Everything was OK but it got me thinking.  What does the IRS say about the tax consequences in real estate transactions in regards to distressed situations.  This is a common question from clients. Let’s see what the IRS has to say: The Mortgage Forgiveness Debt Relief [...]

Filed Under: Blog for Homeowners Tagged With: Cancellation of Debt, foreclosure, Form 982, IRS, Loan Modification, Mortgage Forgiveness Debt Relief Act, Reduction of Tax Attributes Due to Discharge of Indebtedness, short sale