May 25th, 2011 1:44 PM by Teresa Molina
Will you have any tax implications with a Short Sale or Foreclosure?
If you sale your home at a loss and the remaining loan balance is forgiven, does this constitute a cancelation of debt or income?
Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred by refinancing a home?
The IRS and State of California address some of these concerns. I highly recommend consulting with an Accountant and/or Attorney for advise.
http://www.irs.gov/individuals/article/0,,id=179414,00.html
http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.shtml