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Negative Equity and How You Can Avoid Tax On Phantom Income From Relinquished Property

realpropertycheck.com November 8, 2010

Negative Equity and How You Can Avoid Tax On Phantom Income From Relinquished Property

A short sale or a foreclosure can come with a twist: it can have severe tax consequences which only hit you after the fact. By relinquishing a property with negative equity, you incur what is called phantom income from cancellation of indebtedness unless…

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Filed Under: Homeowners' Club, Investing Tagged With: 1031 exchange, deed in lieu of foreclosure, delinquent loans, homestead, IRS, mortgage, phantom profits, taxes

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bankruptcy building wealth in real estate code violations commercial real estate contingency clause deed deed in lieu of foreclosure delinquent loans double-dip Fannie Mae featured FHA foreclosure foreclosures Frank-Dodd bill Freddie Mac GNMA GSEs HAMP HARP home prices homestead IRS junior lien lease option lien loan modifications lot number mortgage mortgage originator no-docs loans notice of commencement phantom profits REO residential robo-signing Robo Gate second liens second mortgage seller financing taxes title company title insurance unsold inventory Zillow

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