My house was foreclosed on: Is the forgiven debt "income" to me?
Many Floridians have had to face the dreadful experience of a foreclosure. Just when they they thought it could not get any worse, they get a letter from the IRS stating that the debt forgiven will be considered income to you.
Financial institutions that write off more than $600 are supposed to send the IRS and the defaulting borrower a 1099-c statement. If the property foreclosed upon was your primary residence, the "income" or "deb forgiven" is exluded as income (up to $2 million).
To learn more about this article, please visit http://www.news-leader.com/article/20110313/BUSINESS/103130322/Forgiven-debt-can-trigger-tax-bill?odyssey=mod%7Cnewswell%7Ctext%7CSpecial%20Reports%7Cs.
If you have questions about Florida Foreclosures or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
