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Are there tax consequences from a short sale?

consequences sale short tax
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Are there tax consequences from a short sale?

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Yes. In short sales that involve the forgiveness of a defiency from a lender to a homeowner, the lender may issue the homeowner a 1099-C form for the deficiency amount. This amount may be deemed taxable income to the homeowner. The homeowner must consult with a tax attorney or CPA to determine the exact impact it will have on the homeowner.

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