You'll need to sign in or create an account to connect with an expert.
This means "did the buyer take any of the debt associated with the property" such as back taxes, liens, past due interest (if the mortgage was assumed), etc.
Many times the buyer will agree to take the property without asking the owner to clear it of liens or back taxes. This is done often in a short sale. When this happens, the IRS says this is income to the owner/seller because they essentially "made money" by not having to pay the taxes, liens etc.
This means "did the buyer take any of the debt associated with the property" such as back taxes, liens, past due interest (if the mortgage was assumed), etc.
Many times the buyer will agree to take the property without asking the owner to clear it of liens or back taxes. This is done often in a short sale. When this happens, the IRS says this is income to the owner/seller because they essentially "made money" by not having to pay the taxes, liens etc.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ronaldspencesr
New Member
Crystal A
New Member
theLower99Percent
New Member
y_and_y
New Member
jyee315
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.