Legal Question in Tax Law in California

I am going to be recieving a 1099 c form next year and be owing alot of money due to a short sale im not sure what to due because i am now married and own two other properties. I will probably be getting a divorce this year and i am not sure what direction to go. could i please get some advice.


Asked on 3/22/10, 6:29 pm

2 Answers from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

First, if you were insolvent at the time of the short sale, or if it were your principal residence, the forgiveness of indebtedness income would not be included in taxable income. Because of the divorce and ownership of other properties you should immediately retain a tax attorney.

I hope thisw helps!

Ron Cappuccio

www.TaxEsq.com

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Answered on 3/27/10, 8:13 pm
Ken Koenen, LLM Law Office of Ken Koenen

There are a number of exemptions to this being taxable income. Of course, it would have been best to seek advice before the short sale to determine the ramifications. What the situation is in Federal taxes can be different for state of California taxes, assuming that is where the property was. I agree with Mr. Cappuccio, in that you need to seek legal advice from a tax attorney immediately,

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Answered on 3/27/10, 10:58 pm


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