Can you give a lender 1099-c, a co-owner who is not on the mortgage in a short sale?

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I bought a property with another investor and the mortgage is in his name only. Our agreement was to split the payments, but he could not pay, then the title will be excluded. We said a short sale buyer and the bank, they are all selling, and there are no tax consequences for me, since I’m not on the loan.

2 Comments
  1. Reply
    William
    April 29, 2011 at 10:02 pm

    A 1099-C would go to the party(ies) that are the borrower(s) of record; i.e., the person(s) “on the mortgage loan.”

  2. Reply
    Dazy
    April 29, 2011 at 10:33 pm

    A 1099-c is only indicating that the property is sold as a short sale. Even if you are not on the mortgage, if you are listed as the owner, the transaction is reportable to you. This does not mean there are tax consequences to you, necessarily. In other words, this is not indicating that there is a forgiveness of debt, which may happen to the mortgage holder. All it means is that you sold the property and may need to report it on your tax return showing a gain or loss on the sale.

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