Comments on: Cheat the IRS

By: Todd Temaat

Todd Temaat — Tue, 29 Sep 2009 03:20:24 +0000

Try this: CA Proposition 8: Decline in value

I also contacted Brent Lane who lives in Sacramento and may be able to help out.

By: Tiffany Hernandez

Tiffany Hernandez — Wed, 09 Sep 2009 21:29:29 +0000

Any good links to tax implications for individual states? We are from California, and it looks like we will not have the same tax protections as at the federal level. If we do a short sale this could mean $300k+ in taxable phantom debt, even more if we go with foreclosure. We are trying to cofirm this? Can you suggest any help? thank you.

By: Todd Temaat

Todd Temaat — Sat, 11 Apr 2009 22:45:39 +0000

If you own the house and make the payments, you should be able to escape paying taxes on it. I’d recommend reading through the IRS guidance on this because we can’t give tax advice.

However, based on our experience, most people that sell their home through a short sale do not have to pay taxes for one of two reasons.

1. They meet the qualification guidelines mentioned in the article above

2. They were actually insolvent when the home was sold (which is another reason for exemption).

Again, please check out the IRS site…specifically, this article on Home Foreclosure and Debt Cancellation.

By: jon

jon — Tue, 07 Apr 2009 04:19:17 +0000

me and my brother in law bought the house 2005
my brother in law have his primary house
me and my husband live in the house(our primary home)and pay the mortgage and property tax
we want to short sale the house
are we going to pay tax if my brother in law have his primary house (difference

By: Cheat the Irs

Cheat the Irs — Thu, 08 Jan 2009 00:23:49 +0000

[...] Did you know that if you got a mortgage workout from your lender you don’t have to pay income taxes on it? In late 2007, Congress passed a bill that provides a special tax relief provision in these cases.[Continue Reading] [...]