Short sale of home
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Short sale of home
Are you taxed on the forgiveness of
debt on a short sale?
Asked on August 16, 2016 under Real Estate Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, you are. Legally and mathematically, being forgiven debt is the same as being paid that amount of money: for example, say you owe $10,000 and it is forgiven; you are now $10,000 better off; you effectively have $10,000 more than you had. That is the same as if you were paid $10,000.
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