DEBT REDUCTION, REAL ESTATE SHORT SALES AND TAXES
- Are you considering a short sale on your property?
- Were you involved in a short sale?
- Have you negotiated the reduction of your outstanding debt?
The attorneys at the Shams Law Firm are providing you with a tax alert that many individuals and businesses are not aware of. If you were involved in a real estate short sale or if you have negotiated the reduction of the debt you owe to creditors, you may have to pay tax on the amount of the debt that was forgiven! One of the tactics that banks and other creditors who have taken losses in short sales and debt reduction have done recently is to issue 1099’s for the amount of reduction of debt that they agreed to with certain consumers.
The good news is that the attorneys at the Shams Law Firm are experienced with the strategies that can be used to lessen the difficulties of these unexpected huge tax burdens.