Tax clock is ticking for underwater homeowners

Real estate tax talk

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

Ordinarily, if all or part of a home loan is forgiven by the lender, either in a short sale or foreclosure, the amount forgiven is taxable income. Thus, for example, a homeowner who had $100,000 in mortgage debt forgiven through a short sale would have to pay income tax on the $100,000.