debt forgiveness tax implications
What are the tax implications of taking an approved lender for the loss of my home?
We recently moved for reasons Family and jobs in Phoenix, Arizona, San Antonio, TX. We have only owned our house in Phoenix for two years and is currently value has decreased by at least $ 80K. We were offered the possibility of a "short sale" with your bank, but I do not what are the tax implications of that are. What we could end paying taxes if we had a "cancellation of debt" of $ 50k of our bank?
You only have to pay tax on income their state and the IRS for that amount. You get a 1099
