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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: SHORT SALE Posted by TheShortSalePro on April 24, 2003 at 3:16 PM In Reply to: SHORT SALE posted by James on April 24, 2003 at 6:38 AM Not necessarily. Though WAMU will send a 1099 to the Sellers, and the IRS is known to treat forgiven debt as income, the Sellers may not have a tax liability. The IRS imposes certain and specific tests to indicate solvency. If the Sellers are insolvent at the time the debt was forgiven, the 'income' isn't not subject to tax. There are degrees as to liability. Have the Seller's check with their tax professional. Follow Ups: What about 1098's on a Subject-To? SeanW 9:04 PM, 04/24/03 (0) Re: SHORT SALE TIM 8:30 PM, 04/24/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Not necessarily. Though WAMU will send a 1099 to the Sellers, : and the IRS is known to treat forgiven debt as income, the Sellers : may not have a tax liability. The IRS imposes certain and specific : tests to indicate solvency. If the Sellers are insolvent at the : time the debt was forgiven, the 'income' isn't not subject to tax. : There are degrees as to liability. Have the Seller's check with : their tax professional. Optional Link URL: Link Title: Optional Image URL: [ 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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