Foreclosure and income taxes

Source: - "http://billsplan.com/pages/TaxEffectsFC.html"

If your home was foreclosed on and you did not get a short sale or deed in lieu of foreclosure, do you claim the amount of forgive debit on your taxes

I didn't get anything saying the debt was forgiven--but we are filing bankruptcy to write itoff this year anyway. I do now know that from now til 2012--the irs is forgiving the income tax onforgiven debt for foreclosures. So I wouldn't haveto pay taxes on forgiven debt anyway.

Bankruptcy is an exception to the Inclusion of Discharged debt to income.

I sold my home in a short sale last year and I had an FHA loan. My processor told me that I would not get a 1099 given the circumstances of a FHA loan. I guess the debt is just forgiven. In this case, is there any income tax relief at all for this?

Hi, I received a 1099-A for my property from my 2nd mortgage, but my home never foreclosed. What should I do with this?