What are my tax liabilities after a HAFA short sale?
Bought this house for $ 116,900. Still owe about 88,500 on it. Selling it for $ 89,900 but with realtor’s commissions, it will be a short sale. Under HAFA, there is no deficiency judgment but I will get a 1099 to submit at tax time, such as Mortgage debt forgiveness act or submitting Form 982? What are my tax liabilities and can I negate them under certain circumstances?