My house is $70,000 under water and I am planning a strategic default. I look at it as a bad investment. The house is my sole residence, and has never been refinanced. My concern is the IRS. I worry about the IRS taxing me on the difference between what I owe on the house, and whatever the bank gets for it. I'm told the difference may be considered taxable income. Would I likely receive a form 1099 from the IRS? Can I file a form 982 to make the "income" from the 1099 non-taxable?
Small business taxes Small business income tax Debt collection for businesses Business real estate Bankruptcy Debt Lien Debt relief Bankruptcy and debt Real estate finances Foreclosure Short sales Real estate and bankruptcy Real estate Business Mortgage debt Tax law Deed in lieu of foreclosure