Let’s find a tax preparation office for you

or

Information regarding browser or device support

Oh no! We may not fully support the browser or device software you are using!

To experience our site in the best way possible, please update your browser or device software, or move over to another browser.

Close

Tax Implications of a Real Estate Foreclosure or Short Sale

Was your home foreclosed upon or short-sold? This can have huge effects on your taxes. Find out what you need to report, along with the wider impact of events like these.

What effect does a home foreclosure or short sale have on your taxes?

If your home was foreclosed or you had a short sale this year, you need to report this on your tax return – the amount of debt forgiven by the loan holder is considered income.

For tax years prior to 2017, forgiven debt from a foreclosure or short sale of your primary residence is exempt from taxes. Beginning January 1, 2018, unless Congress approves an Extenders bill, the amount of income forgiven at foreclosure is taxable. Your lender should send you Form 1099-C when your home is foreclosed upon – this form will have the information you need to determine your taxable amount.

Tip/Help

If you’ve had a short sale or foreclosure of your home this year, you need to report it on your tax return – the debt forgiven by the loan holder is considered income.

Why Jackson Hewitt®?

WE’LL MAKE IT EASY

We do the work so you don't have to worry. Open late and weekends, no appointment necessary.

WE’LL FIGHT FOR YOU

We're not tax machines. We're Tax Pros who are happy to answer all of your questions.

WE KNOW OUR STUFF

We'll dig deep to get you 100% Accuracy. Maximum Refund Guaranteed.