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What are the tax implications of a short sale, foreclosure, and deed in lieu of foreclosure?

April 26, 2017deed foreclosure implications lieu sale short tax

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What are the tax implications of a short sale, foreclosure, and deed in lieu of foreclosure?

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The IRS requires lenders to file form 1099 stating the amount of any deficiency balance forgiven or written off. The balance is treated as taxable income. You should consult a tax professional regarding your tax liability.