Ask Tax Question

I sold my primary home on a short sale in 2012. Do I need to report the amount of mortgage debt forgiven as income?

Mortgage Short Sale
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Gnanendrasinh Rathod
Yes, Mortgage debt forgiven report as Other Income on line 21 of 1040.
Leave a Comment 261 weeks ago

User Photo
Steven Potts JD EA IAR
You can exclude canceled (forgiven) debt from income if it is qualified principal residence indebtedness (QPR). QPR is any mortgage you took out to buy, build, or substantially improve your main home. It also must be secured by your main home. QPR also includes debt secured by your main home that you used to refinance a mortgage you took out to buy, build, or substantially improve your main home but only up to the amount of the old mortgage principal just before the refinancing.
Leave a Comment 261 weeks ago

Meet Leading Tax Advisors

User Photo John Stancil

Lakeland, Florida, USA

Tax Advisor/CEO

User Photo Peter J. Scalise

New York, New York, USA

Federal Tax Credits & Incentives Practice Leader

User Photo John Dundon, II EA

Denver, Colorado, USA

Tax Director


View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page



Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today