For short sales, the canceled debt is often reported as income…
But, there is a special provision that allows up to $2 million of canceled debt on a mortgage to be excluded from income. This applies only to a principal residence – not a second home. And the exclusion applies only if a foreclosure or short sale takes place from 2007 through 2012. Read more at “Canceled debt often must be reported as income”.
For more information or if you have any questions or comments, please send me an e-mail to: michael@miamiflorida.com or text or call me at my mobile number 305.450.0036
