Foreclosure & Short Sale Tax Consulting 

If you go through a foreclosure or a short sale on your home…will you be taxed on the forgiven debt? 

The cancellation of debt is generally taxable unless you can exclude that income under one of the exceptions the IRS permits to their specific rule that canceled debt is income. 

If you got a 1099-C form, the IRS may be looking for that income to be reported on Line 21 of your 1040 form as “Other Income”, and you owe tax on it. 

Contact Rich Kruth to help you determine if you meet one of the exceptions. 

Questions? Click here to contact Rich

or call Rich’s office number 847-608-0547,

toll free number 877-TAXSFLP (829-7357),

or FLP Mobile number 847-767-7638