Did you suffer a short sale or foreclosure on your home? This can significantly affect your taxes. Find out what you need to report, along with the wider impact of events like these.
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.
Tax Implications of a Real Estate Foreclosure or Short Sale
What effect does a home foreclosure or short sale have on your taxes?
For tax years through 2025, forgiven debt from a foreclosure or short sale of your primary residence is exempt from taxes. Your lender should send you Form 1099-C when your home is foreclosed on, which will have the information you need to determine your taxable amount. The amount of debt forgiven is the lesser of the original loan amount or $325,000 ($750,000 if married filing jointly).
When every dollar matters, it matters who does your taxes™
WE SEE YOU
Our Tax Pros will connect with you one-on-one, answer all your questions, and always go the extra mile to support you.
WE GOT YOU
We have flexible hours, locations, and filing options that cater to every hardworking tax filer.
We’ve seen it all and will help you through it all. 40 years of experience and our guarantees back it up.