Taxed on Your Foreclosure or Short Sale?

Today's New York Times article talks about the double wammy of loosing your home and then being taxed on loan balance you did not repay.

The article is about foreclosure but the same principal applies to Short Sales and Deed inleu of Forclosure. If you borrow money and don't pay it all back, the difference is income to you and you owe tax on that income.

New York Times article gets into more of the details of what tax do you truly owe and how it should be computed but the bottom line is you owe tax.

Here is the Link:
Foreclosure and Taxes