Sold home on short sale - Debt Forgiveness Act on second queston.

ramsey

LoanSafe Member
Mar 14, 2011
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We short sold our home in September 2013 and have received a 1099-C for the amount still outstanding on our second. Do you stand a better chance of an audit when filing for the Debt Forgiveness Act. And how do you determine the amount to claim if some of the funds were used for other then remodeling/improvements of the home? Does the IRS get forms from the mortgage lender breaking it down?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
I would recommend consulting with your CPA or tax adviser on this question. I personally would hate to give you false information but someone here might be able to shed some light on this subject.