In a Short Sale transaction, do I have to pay income tax on the remaining debt owed to the lender?
This is a great question…and a question I was just asked by one of my Short Sale listing clients.
The answer is…it depends, but, according to this IRS web page link, http://www.irs.gov/individuals/article/0,,id=179414,00.html:
“The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principle residence. Debt reduced through [...]
