Tax & Business Services

John F Howes CPA




January 25th, 2009 at 8:11 pm

Debt Cancellation on Short Sales and Foreclosures

Half million dollar house in Salinas, Californ...

Half million dollar house in Salinas, California

For those facing a foreclosure or a short sale on real estate,  here is a video from an IRS forum on the subject:

Debt Cancellation
Has your client received a 1099-C? Are you unsure how to handle it? Is your client in foreclosure? The tax treatment of cancelled debts is extremely complex and poses a significant challenge to affected taxpayers. A panel will discuss this pertinent topic and provide you with the tools you need to help your clients accurately report this item on their tax return.

This seminar was presented by the Taxpayer Advocate Service (TAS). It was filmed in July 2008, at the IRS Nationwide Tax Forums in Orlando, FL.

Please download Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals), to be able to follow the example in the seminar.

The seminar can be viewed here.

There is also more IRS information here.  If you are in this situation, my firm can assist you with the tax consequences.

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