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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Primary Residence Question and Tax Consequences of Loan Forgiveness Posted by Randolph Mortimer on May 25, 2010 at 2:47 PM Hi there, I have a home in another state that I bought for say $1,000,000 that I recently short-sold for $600,000 and have received a 1099 for the loan forgiveness amount. When I bought this home in 2006, I actually lived in it and it was my primary residence for a year before I moved to another state. Since I was already looking at a loss if I sold that home I decided to rent it, which I did for about a year (I was hoping the market would recover). My question is, can this home that I haven't actually lived in for about 3 years be classified as my primary residence for the Mortgage Forgiveness Debt Relief Act of 2007? The new state I moved to and have lived in for the last roughly 3 years I have also worked in and have received all my bills, etc. in. Please help? I would love to not have to pay taxes on the forgiven amount. Thanks in advance. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Hi there, : I have a home in another state that I bought for say $1,000,000 that I recently short-sold for $600,000 and have received a 1099 for the loan forgiveness amount. When I bought this home in 2006, I actually lived in it and it was my primary residence for a year before I moved to another state. Since I was already looking at a loss if I sold that home I decided to rent it, which I did for about a year (I was hoping the market would recover). My question is, can this home that I haven't actually lived in for about 3 years be classified as my primary residence for the Mortgage Forgiveness Debt Relief Act of 2007? The new state I moved to and have lived in for the last roughly 3 years I have also worked in and have received all my bills, etc. in. : Please help? I would love to not have to pay taxes on the forgiven amount. : Thanks in advance. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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