People who lose their homes in foreclosure, abandon them or give them back to their lenders will receive a Form 1099-C Cancellation of Debt because the lender has forgiven a portion of the debt.
The forgiven amount is the difference between the amount owed on the mortgage and the value of the home. Prior to 2007, consumers had to pay federal taxes on the forgiven amount.
Showing posts with label Pub. 4681. Show all posts
Showing posts with label Pub. 4681. Show all posts
Wednesday, March 30, 2011
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