I sold my primary home in May 2013 as a short sale. I also rented it out at the time. I qualified for a short sale because I had to relocate over 230 miles to gain employment and I had only rented it for 15 months total before the sale was finalized. How do I file? Do I simply submit the 982 and the Schedule E and that's it? My understanding is that I do not have to pay taxes on the amount canceled on the 1099-C form I received; is this correct?
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Tax Professional Answers
There are many, many variables in the short sale of a primary residence/rental home. Much of,it depends on timing of the sale versus timing of the actual cancellation of debt versus recapture of depreciation. It is really not accurately possible,to answer your question without a detailed interview. Please consider hiring an EA for a professional job on your taxes this year. It could make a ton of difference in the years to come.Leave a Comment 388 weeks ago