Quote: (02-07-2017 06:11 PM)Merenguero Wrote:
Quote: (02-07-2017 05:43 PM)frozen-ace Wrote:
@ mereng-
That sounds like tax hell. The specific act you mention expired in 2014, the debt would have had to have been cancelled in years prior (2016 too late)-
https://www.irs.gov/uac/home-foreclosure...ncellation
What about starting on page 9?-
https://www.irs.gov/pub/irs-pdf/p4681.pdf
Thanks. It's not a ton of money, but I obviously don't want to incur any additional taxes. I also read something that if the fair market value of the property exceeds the amount forgiven, which it does in my case, it is not considered income.
The act has been extended through December 31, 2016, but has not yet been extended any longer than that. The debt was discharged in mid 2016. What I need to do is file a Form 982 along with my 2016 tax return and seek an exemption. As far as I can tell, I should be in the clear. If they try to give me a problem down the road, I may have an argument that they waited too long to forgive the debt. If they had not forgiven the debt, they may have very well been barred from suing me by the statute of limitations. They might not have really forgiven anything.