This may seem a a complex but I will try my best: I sold an investment condo in 2010. Selling price was $38,000 and owed bank 228,000. This was a short sale. Bank has charged it off to zero and sold it to some scavengers. My atty has been able to keep them off my back.
My question is this, my account wants to claim the selling of the unit on my 2010 taxes take the difference as a loss. This will result in a large refund to me which I really don't want since the bank may decide to give me the 1099C in a future year.
The outstanding balance in 2010 was $198,000. In 2011 the bank submitted a PMI claim and received $40,000, reducing the indebtedness.
He is telling me that he will use the lowest number of $158,000 on my taxes. When I asked him what would happen in say, 2012, the bank issues a 1099C, will I have to pay the tax refund back, he told me that I would not because at that time he would be able to wipe out the entire taxable amount since I have claimed this as income property in prior returns.
Hope this is clear enough to understand. Should we just be deducting thie condo for another year or take advantage of not receiving the 1099c?
Thank you.
My question is this, my account wants to claim the selling of the unit on my 2010 taxes take the difference as a loss. This will result in a large refund to me which I really don't want since the bank may decide to give me the 1099C in a future year.
The outstanding balance in 2010 was $198,000. In 2011 the bank submitted a PMI claim and received $40,000, reducing the indebtedness.
He is telling me that he will use the lowest number of $158,000 on my taxes. When I asked him what would happen in say, 2012, the bank issues a 1099C, will I have to pay the tax refund back, he told me that I would not because at that time he would be able to wipe out the entire taxable amount since I have claimed this as income property in prior returns.
Hope this is clear enough to understand. Should we just be deducting thie condo for another year or take advantage of not receiving the 1099c?
Thank you.
