Primary residence is currently in foreclosure. BK7 was discharged in 2010. A realtor suggested a short sale and negotiating relocation allowance from BofA. If the house is sold via short sale beyond Dec 2012, what are the tax implications? Is it viewed as taxable income by IRS? Foreclosure's Trustee Sale is Feb 2013, any tax implications? Do I get taxed either way?
When's the best time to move the house? If I move now and something happens to the house, what is my liability?
Thanks in advance.