Updated almost 13 years ago on . Most recent reply

Deficiency Judgments & Debt Relief Tax Liability
If a seller of a vacant (and run down) property get's debt forgiveness in a short sale, are they liable tax wise (to the IRS) for the forgiven debt if the house was a rental at the time of purchase?
How about it was a primary residence but isn't any longer?
Are you seeing banks going after sellers/borrowers for deficiency judgments? In NJ they're allowed.