1099 to seller after short sale???
I'm hoping to find more information about a seller receiving a 1099 and being responsible for income taxes for the difference between the sale price and the outstanding mortgage during a short sale. Does this always take place, the seller receiving a 1099 and needing to claim this as income? Is there any other filing a seller might be able to do to offset this? Of course I would recommend they speak to their tax advisor, just want to be sure I'm understanding this correctly prior to signing a purchase agreement so the seller doesn't get a nasty surprise at the end of the year by me not telling her about this.
Thanks
(edit) seems I found this answer in another area on here....and if correct. The seller may not even receive the 1099 but regardless WILL be responsible for that amount as received income. Depending on their situation and tax advisior will determine whether it can be exempt income, or whether they will be responsible for taxes on that amount. Correct???
Oh, is there a "search" function on this forum? Sorry.....new member finding his way around :roll: