asked

We just sold our house via short sale. We lived in the house from June 2007-October 2009. We moved for a job opportunity to FL and have lived here since. We rented the property out until our tenants stopped paying and we had to evict them. This put tremendous financial strain on us so we decided to do the short sale and it was just approved. For 2013 taxes, will we qualify for the mortgage debt relief act or will it become income? If it becomes income, what can we do this year to ensure we don't get hit with a big tax bill? We have two kids and my husband is a student. Thanks! ($67,000 in forgiven debt)

April 18th, 2023

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