See all Tax Filing
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.
|
|
Real Estate
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 2020, 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. In tax years beginning January 1, 2021, the amount of income forgiven at foreclosure or a short sale may be taxable.
For tax years through 2020, forgiven debt from a foreclosure or short sale of your primary residence is exempt from taxes.
Related articles
Tax Deductions and Benefits of Buying a New House
Buying a home can offer some major tax benefits – see how you can take advantage of them as a new homeowner.
View more
Do You Own a Rental Property?
Owning a rental property has many tax implications. Here’s what qualifies as rental income, along with a list of deductions you can take.
View more
Tax Deductions and Benefits of Owning a Home
What are the many tax benefits of owning a home? Find out how owning real estate might be able to ease your tax burden.
View more
Why Jackson Hewitt®?
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 fight for you
We won't stop until you get every dollar you deserve, guaranteed. It's what we've been doing for over 35 years.