Foregiveness of debt tax
Posted: Fri Apr 15, 2011 2:42 pm
If foreclosure she might get a 1099-A. Primary resident debt forgiveness is up
to 2 million as to the debt cancellation. However, if there is any capitalgain...she might be able to escape with 250k-500k capital gain exception.
If 1st deed of trust is a purchase money...then it is non recourse loan....no
1099A issued by lender. No problem.
Paul Horn
Attorney at Law
Certified Public Accountant
1045 E. Valley Blvd., Suite A215
San Gabriel, CA 91770
800-380-7076
________________________________
To: cdcbaa@yahoogroups.com
Sent: Fri, April 15, 2011 2:33:48 PM
Subject: RE: [cdcbaa] Foregiveness of debt tax
I have a client who came in to file a Chapter 7 bankruptcy. She has a primary
residence and the Trustee Sale date is next month. What is the law regarding
getting taxed on the foregiveness of debt from the first trust deed if she did
not file a bankruptcy? (there are no other deeds of trust)
Nicholas S. Nassif, Esq.
LAW OFFICES OF NICHOLAS S. NASSIF
3055 WILSHIRE BLVD.
SUITE 900
LOS ANGELES, CA 90010
TELEPHONE- 213-736-1899
FAX- 213-736-5656
WEB- www.nassif.com
E-MAIL- nsnassif@pacbell.net
If foreclosure she might get a 1099-A. Primary resident debt forgiveness is up to 2 million as to the debt cancellation. However, if there is any capital gain...she might be able to escape with 250k-500k capital gain exception. If 1st deed of trust is a purchase money...then it is non recourse loan....no 1099A issued by lender. No problem. Paul HornAttorney at LawCertified Public Accountant1045 E. Valley Blvd., Suite A215San Gabriel, CA 91770800-380-7076From: Nicholas S. Nassif <nsnassif@pacbell.net>To: cdcbaa@yahoogroups.comSent: Fri, April 15, 2011 2:33:48 PM
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