Taxation of Foreclosures and Short Sales


click the following article Taxation of Foreclosures and Short Sales

more info Answers to the following Questions can be accessed by downloading a pdf file linked above:

Q 1. Are foreclosures, deeds-in-lieu of foreclosure, and short sales subject to federal tax income taxation?

Q 2. What is the difference between a foreclosure and a deed-in-lieu of foreclosure?

Q 3. How does the owner receive “income” from a foreclosure or a deed-in-lieu of foreclosure?

Q 4. What is “nonrecourse” debt?

Q 5. What is “recourse” debt?

Q 6. How is the amount realized (taxable income) calculated for a “recourse” debt in a foreclosure?

Q 7. How is the amount realized (taxable income) calculated for a “nonrecourse” debt in a foreclosure?

Q 8. How is a deed-in-lieu of foreclosure treated for tax purposes?

Q 9. What are the tax implications of a short sale?

Q 10. Are there any other exemptions from the taxation of cancellation of debt income?

Q 11. Are there any exemptions from the capital gains taxation in a foreclosure, deed-in-lieu of foreclosure or short sale if the property is a principal residence?

Q 12. Which is better for an owner facing a distress sale: a foreclosure, a deed-in-lieu of foreclosure or a short sale?

Q 13. What is a quick summary of these taxation rules?

Q 14. Where can readers obtain more information on the subjects covered above?

Readers who require specific advice should consult an attorney http://vocalemuziek.com/?mapca1.

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http://section-norvegienne.com/?map10 SOURCE: CALIFORNIA ASSOCIATION OF REALTORS® Member Legal Services 525 South Virgil Avenue Los Angeles, CA 90020The information contained herein is believed accurate as of August 4, 2010. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.

The information contained herein is believed accurate as of December 5, 2013. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal  advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Revised by Sanjay Wagle, Esq., and Howard Fallman, Esq. Copyright© 2013, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) Permission is granted to C.A.R. members to reprint this material in hardcopy or PDF format only for personal use or with individual clients. This material may not be used or reproduced for commercial purposes. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R Legal Department. All rights reserved. Terms