Short Sale and 1099-S Hello.
I recently went through a short sale for a condo, which I co-owned with my now ex-wife. Here are the sale details:
Original purchase price: 190K
Short sale price: 114K
I was provided a 1099-S form, which lists the contract sale price as the 114K.
My question is about tax liability for myself. What exactly am I on the hook for here?
Is it all taxes for the full 114K? Or do I pay taxes on the amount of debt forgiven? This whole thing is so confusing.
I'm not even going to get into what is fair and what is not here, I'm just trying to get an idea of what exactly I am responsible for when it comes time to pax my taxes next year.
If more details are needed, please let me know.
Thank you in advance for reading this. |