Tax Consequences Of Short Sale
I hv bn told that when a short sale occurs the financial institution will issue a 1099 to the seller because their indebtedness has bn reduced, which constitutes "income" per irs regulations.
Is this true?
Thank you
I have been told that the lender can either get a deficiency judgement for the difference or they can issue a 1099.
If the approval letter says settlement in full they will not get a deficieny but can still issue a 1099.
Brenda
thank you for yr reply. I've bn out of town and not checked the board. thanks