Posted by REGuy on June 08, 2009 at 13:13:49:
No because it was last used as a rental. The law is very clear.
Does Anyone Know About Short Sale Tax Exemption? - Posted by Joe S
Posted by Joe S on April 27, 2009 at 22:32:58:
Hello,
Iâ??m working with a Realtor now who has a good deal of experience with short sales, however thereâ??s a question about the tax implication. As he explained to me, there is an exemption for tax liability on short sales if completed by the end of this year. However, what he was uncertain about, is if the house is reported as a rental property, if the exemption still applies.
Fact is, we didnâ??t buy the property as an investment. We bought it to live in, and we lived there for over 3 years. We moved into the house in the summer of 2003. Renters didnâ??t move in until mid 2006. They moved out Dec 2008. We didnâ??t want to rent, but we were unable to sell it.
Does anyone know if the exemption would still apply to us if the house is listed as a rental property on our 2008 taxes? Iâ??m very concerned with being hit with a tax liability on what might be a large short sale loss.
Thanks to all…
Joe