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QUESTION DETAIL
Related User
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I moved in 2008 from Arizona to Delaware for a job. I tried to sell my home but couldn't, so I ended up renting it out prior to a short sale. I never purchased after relocating. Am I liable for taxes on the cancellation of debt?
ANSWER
The BIDaWIZ Team's Answer:
You will report the cancellation of debt amount, on Schedule D, of
your Form 1040. The debt cancellation amount is the sales proceeds
amount, and the price that you paid for the home, is the basis. Thus,
you will report a capital loss amount, and the transaction will not be
subject to taxation.
