Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
1099 And Tax Question?
I noticed that alot of people are sending out false information about 1099s and the amount owed on foreclosures after it sells for less. If you're unaware, George Bush passed a law on December 20th that was on the front page of almost every paper stating that debt owed on a short sale or a foreclosure and a 1099 will not be owed because of the housing crisis until December 31, 2009. Tell me if I'm wrong, positive answers only please.
2 Answers
- Anonymous1 decade agoFavorite Answer
There are requirements which quite a few people won't meet.
1. Primary residence.
2. Loan must have been to buy, build or rebuild the residence. (Refinances to cover credit card bills won't count.)
3. Foreclosure 1/1/2007 or later.
4. (The easy one) loan less than $1Million.
The debt is sort of forgiven. Instead of automatically becoming income like it was before, it's subtracted from the property's basis. It's still possible to have a capital gain, but it would be harder....
And to tell the truth, I've seen less erroneous posts on this than I have on qualifying relatives.
- Anonymous1 decade ago
This is basically true. However, as with any law, there are certainly some exceptions as to who would qualify. My understanding is that short sales prior to January 2008 will NOT be included.