What Are the Tax Consequences of a Short Sale?

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Tax Consequences of a Short Sale

Lake County tax debt attorney

When you collect money or an income, you are liable for taxes. When you borrow money from someone and that debt is forgiven, you normally also have to pay taxes on that forgiven amount. When you are facing overwhelming debt and considering a short sale, (or deed in lieu of a short sale) remember that there will be tax consequences and those can be complicated.

At the Merideth Nagel Law Firm, in Clermont, Florida, I provide informed, strategic advocacy focused on helping my clients understand and minimize tax liability. Under new laws, if your lender forgives your debt on your home, you may not have to pay taxes on the forgiven amount. These laws may be ending soon, so it is important to take advantage of these huge tax savings now.

What Are the Tax Consequences of a Short Sale?
  • Tax law is complicated and without informed and strategic support you could waive rights or be liable.
  • Many people will make important financial decisions without first consulting with an experienced attorney. Be sure you understand your rights and obligations.
  • Tax consequences, including tax relief, could be incentive to prevent foreclosure and pursue a short sale or bankruptcy. We can help you decide the right option for your family.
  • There are tax exemptions for those who meet the requirements in the test for insolvency. I will review your assets, debts and income to help determine if you qualify.
  • Short sales are taxed under the same rules as foreclosures, so any debt not satisfied with sale proceeds would be taxed as cancellation of debt unless you qualify for “tax relief.”
Tax Debt Forgiveness

While every case is unique, a short sale can be a viable alternative for debtors who qualify for the exclusion from income tax costs associated with debt forgiveness. As your legal representative, I will take the time to understand your unique situation, apply relevant law and aggressively defend your interests at every stage.

Contact a Tax Debt Forgiveness Lawyer Today

As your attorney, I will never stop fighting to protect what is most important to you. To schedule an initial consultation with a Lake County tax debt attorney, call 352-394-7408 or fill out a short contact form today. We want to understand your concerns and provide the help you need immediately.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Serving Lake, Orange, Marion and Sumter Counties.

Serving West Orange County, Lake County, Sumter County & Marion County

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