The Short Sale Guy Shaun McCloskey and the Real Estate Tax Law Guy John Hyre have a very informative interview; Short Sales, Tax Bills and 1099’s.
There’s a lot of meat here.
This is not the typical free download with a lot of hype and very little content. John and Shaun’s interview has so much content you’ll probably be listening to it over and over while taking notes.
They cover such points such as how to negotiate with the bank not to send a 1099 form to the distressed homeowner. Also, they cover what you should do if the IRS does send a letter to the distressed homeowner after the short sale.
Plus John discusses the new legislation, HR3648 The Mortgage Debt Relief Act of 2007, and how that will help distessed homeowners avoid paying taxes on debt forgiveness due to their short sales.
Go to Flipping Homes 2.0 to listen to the interview that is explaining this IRS quirk in plain English.