No Income Tax on Short Sale or Foreclosure — For Now

 No Income Tax on Short Sale or Foreclosure — For Now   Question: We bought our Mesa home ten years ago. The purchase price was $320,000. Our mortgage was $300,000, interest only, payments for ten years, and then amortized over the next fifteen years. Our home is only worth $240,000 today. Although we have been able…

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Seller Liable for Taxes on Capital Gains from Stock Sale

  Question: We have made a significant amount of money since we began investing in the stock market in the early 1980’s. We are concerned about the recent volatility of the stock market, however, and we would like to “cash out” our investments at their current high price. We would then use the sale proceeds…

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Foreclosure and Your Taxes

  Question:  We bought our home in a new Gilbert subdivision six years ago.  Although there has been some appreciation lately, our home is worth only $260,000.  We still owe $380,000 on the mortgage.  After my husband lost his job last year, we finally had to stop making payments, and the foreclosure occurred this February.…

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