1099 Topic

[RDR]

http://experts.about.com/q/Tax-Law-Questions-932/Short-Sale-Home.htm

Interesting link about an accountants explaination on how to get some of the 1099 taxed income reduced.

Chase

[ktj]

If the homeowner had PMI, does that affect the deficiency and thus the debt forgiveness?  For example, if the SS resulted in $X deficiency and the bank was reimbursed by the PMI, does the homeowner still receive a 1099 for $X?

Also, if you consider a normal sale in which the homeowner profits from the sale, if it was the homeowner's primary residence 2 of the last 5 years, the profits are not taxed as income.  Does the same hold true for debt relief from a short sale?

[pstephey]

I believe this is the IRS form and instructions on this topic

http://www.irs.gov/pub/irs-access/f982_accessible.pdf