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Has Anyone Lost There House and Got Hit By an IRS Income Bill?

If so, and not sure if it is still in effect, that so called profit can be forgiven.

Here is the link   http://www.irs.gov/newsroom/article/0,,id=174034,00.html   I got hit with a 40k tax bill, but due to this little unknown fact,  it was forgiven.  The law Valid untill 2012

 
sweet11-12

Asked by sweet11-12 at 4:37 PM on Apr. 21, 2011 in Money & Work

Level 15 (2,314 Credits)
This question is closed.
Answers (7)
  • Anytime you have a debt forgiven it is usually a taxable event. Luckily you were in one of those rare situations where it is forgiven. Sorry that you lost your home, that must have been very difficult.
    Knit2Purl2

    Answer by Knit2Purl2 at 5:00 PM on Apr. 21, 2011

  • I actually thought that was common knowledge. But I imagine it was quite a shock to you, glad you were able to get it forgiven.
    slw123

    Answer by slw123 at 4:53 PM on Apr. 21, 2011

  • Yes it was a shock. I thought what income. Just an FYI for those in the middles of that. I'm OK now.
    sweet11-12

    Comment by sweet11-12 (original poster) at 5:01 PM on Apr. 21, 2011

  • How long after your foreclosure did you receive it? Our house went into foreclosure a few months ago and we have been worried about this.
    Anonymous

    Answer by Anonymous at 5:09 PM on Apr. 21, 2011

  • I think months because the bank did not have an address so they claim, The IRS is the one that let me know, they always know where you are. It happened in 2008 and I got wind of it in 2009. You need to ask ASAP the bank for that paper work to submit , looks like that benefit goes away in 2012
    sweet11-12

    Comment by sweet11-12 (original poster) at 5:15 PM on Apr. 21, 2011

  • I am a Realtor and when we short sale a home,we always advise our clients to speak to an accountant about the possibility of a tax gain. There is a mortgage debt relief act that is in effect for owner occupied homes but it does not always apply.
    voni681

    Answer by voni681 at 9:00 PM on Apr. 21, 2011

  • I just hope those that it applies to take advantage of it. I did get professional help. It did also help I had proof I lived there right up to the end. Things like utilities.
    sweet11-12

    Comment by sweet11-12 (original poster) at 9:08 PM on Apr. 21, 2011

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