Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What tax issues arise if I have to short sale a San Diego rental property?

0
Posted

What tax issues arise if I have to short sale a San Diego rental property?

0

The borrower/seller/landlord should be extremely careful in the short sale situation, as it requires delicate handling from many aspects. First, showing a property for sale when you have tenants can be an issue. Second, vacant/investor/rental properties often go to the bottom of the negotiator’s stack. And third, California has enacted laws that penalize a landlord for receiving rents that and not paying the mortgage. Investors are wise to discuss the tax consequences with a tax specialist or C.P.A. to make sure that the tax counselor has a plan to address the 1099-C issue in advance. If the 1099-C presents a problem for the seller, he or she should explore the use of IRS Form 982 in order to avoid or minimize any tax liability.

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.