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I sold my house in a short sale, but had a qualifying life event so that I didn't have to claim the difference as income. Are there any specific forms I should have received, or need to submit?

 
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DDollar
Expert Alumni

I sold my house in a short sale, but had a qualifying life event so that I didn't have to claim the difference as income. Are there any specific forms I should have received, or need to submit?

Any debt that your mortgage lender cancels because of a short sale is taxable only if the terms of your mortgage hold you personally liable for the full amount of the loan. Regardless of the tax consequences, your lender should have reported the debt cancellation on a 1099-C form. Even if not taxable, you would need to include it in your tax return.

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