Is FHA Short Sale Incentive taxable
ProSeries : 2011Client received a check for $800 for "FHA short sale incentive" upon selling main residence in a short sale. Is this incentive check taxable? Can't find anything on IRS website. Thanks.
1
36
cIjtXuuuyr4yUOacwZ5xHE
02/06/12 8:46pm PST
Viewed by asker 02/11/12 7:47am PST
Viewed by asker 02/11/12 7:47am PST
10 Replies
taxguy623
Questions asked: 128
Questions answered: 2063
Points earned: 4609
Questions answered: 2063
Points earned: 4609
Accountant Community AllStar
Advisory council of Accountant community power users.
02/06/12 8:48pm PST
was this a personal residence
If I am busy doing nothing--how do I know when I'm done?????????
02/06/12 8:54pm PST
assuming no 1099 was issued for the incentive amount
was it reflected on the closing statement?
02/06/12 8:59pm PST
short sale of main residence is non-deductible loss
I-d be hard pressed not to include the incentive check under the same exclusion as personal residence sale-particularly if no 1099 issued
i see stranger and stranger stuff coming out of short sales (moving expenses 1099'd etc
02/06/12 10:28pm PST
This previous thread might help.
http://community.intuit.com/posts/where-do-i-report-cash-for-keys-income-for-abandoned-property
02/08/12 7:56pm PST
yes, $750 FHA incentive was listed on closing stmt as a settlement charge. still taxable or no?
02/08/12 8:11pm PST
in my opinion--no--it would have been included in any SEC 121 exclusion for gain--the resulting loss is still a non deductible personal loss--i would consider it part of the closing or settlement costs
if you are doing a home sale worksheet--i would list as an addback to basis
02/08/12 8:20pm PST
found this--apparently not an uncommon practice
doesnot address tax issues-but
http://shortsalesuperstars.com/forum/topics/fha-short-sale-seller
02/08/12 8:24pm PST
Latest post
