Question on short sale debt pardon

[jpinpb]

One more question. If somone can clear up one more think. I read the link that UCGal provided. I’m not clear on this part: “If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000”

If the property was rented the last year, but the property was owned for 5 years, would they qualify?

[CA renter]

jpinpb,

I was under the impression that all mortgage debt forgiven was excluded from the income tax, but another poster who knows better corrected me on that.

“Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.”

http://dsusa02.degreesearchusa.com/t.pl/000000A/http/www.irs.gov/individuals/article/0,,id=3d179414,00.html

[CA renter]

jpinpb,

I was under the impression that all mortgage debt forgiven was excluded from the income tax, but another poster who knows better corrected me on that.

“Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.”

http://dsusa02.degreesearchusa.com/t.pl/000000A/http/www.irs.gov/individuals/article/0,,id=3d179414,00.html

[CA renter]

jpinpb,

I was under the impression that all mortgage debt forgiven was excluded from the income tax, but another poster who knows better corrected me on that.

“Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.”

http://dsusa02.degreesearchusa.com/t.pl/000000A/http/www.irs.gov/individuals/article/0,,id=3d179414,00.html

[CA renter]

jpinpb,

I was under the impression that all mortgage debt forgiven was excluded from the income tax, but another poster who knows better corrected me on that.

“Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.”

http://dsusa02.degreesearchusa.com/t.pl/000000A/http/www.irs.gov/individuals/article/0,,id=3d179414,00.html

[CA renter]

jpinpb,

I was under the impression that all mortgage debt forgiven was excluded from the income tax, but another poster who knows better corrected me on that.

“Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.”

http://dsusa02.degreesearchusa.com/t.pl/000000A/http/www.irs.gov/individuals/article/0,,id=3d179414,00.html

[SD Realtor]

JP here you go.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[SD Realtor]

JP here you go.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[SD Realtor]

JP here you go.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[SD Realtor]

JP here you go.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[SD Realtor]

JP here you go.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[jpinpb]

Thank you very much, everyone!

[jpinpb]

Thank you very much, everyone!

[jpinpb]

Thank you very much, everyone!

[jpinpb]

Thank you very much, everyone!

[Author]

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