Do you have to pay taxes if you ReFi w/ writedown? - Loan Modification Forum

FacingNorth · 11-24-2008, 12:51 PM

This doesn't mention refinancing, does the law also apply for those applying for a short refi?:

"the law temporarily waives the income tax on mortgage debt that is canceled when a homeowner is foreclosed upon, sells a home for less than the remaining debt (a short sale) or gets a loan modification that reduces the principal balance."

I forget the name of the law, but it's the one that was extended from 2009 to 2013.

mykidsmom1119 · 12-01-2008, 11:37 AM

Does anyone know the answer to this? I'm trying to make a decision about a new loan and really need to find the answer.

Happy holidays!

Tory

Moe Bedard · 12-01-2008, 01:09 PM

the best thing to do is to ask a tax accountant this question.......
or the IRS directly
Telephone Assistance for Individuals:
Toll-Free, 1-800-829-1040
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11-24-2008, 12:51 PM	#1 (permalink)
FacingNorth Senior Member Join Date: Sep 2008 Posts: 57 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Do you have to pay taxes if you ReFi w/ writedown? This doesn't mention refinancing, does the law also apply for those applying for a short refi?: "the law temporarily waives the income tax on mortgage debt that is canceled when a homeowner is foreclosed upon, sells a home for less than the remaining debt (a short sale) or gets a loan modification that reduces the principal balance." I forget the name of the law, but it's the one that was extended from 2009 to 2013.

12-01-2008, 11:37 AM	#2 (permalink)
mykidsmom1119 Member Join Date: Nov 2008 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do you have to pay taxes if you ReFi w/ writedown? Does anyone know the answer to this? I'm trying to make a decision about a new loan and really need to find the answer. Happy holidays! Tory

12-01-2008, 01:09 PM	#3 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do you have to pay taxes if you ReFi w/ writedown? the best thing to do is to ask a tax accountant this question....... or the IRS directly Telephone Assistance for Individuals: Toll-Free, 1-800-829-1040 Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time). __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

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