In a short sale, so long as your taxes are prepared properly, it should result in no tax liability in virtually every circumstance.Evan Nielsen, Tax Attorney
In the video below, 30-year veteran tax attorney Evan Nielsen explains how taxes really work with short sales.
Many people falsely believe debt that is forgiven after short sales will always equal a big tax bill. In our experience of working with thousands of homeowners, that's just not how it usually works.
Obviously, every situation is unique and you should seek professional advice specific to your situation. We've talked to hundreds of people who have experienced no liability, and experts like Attorney Nielsen say there’s no tax liability in virtually every circumstance. So if you’re talking to anyone who’s warning you about taxes in a short sale… get a second opinion. In virtually every situation, a short sale is better than doing nothing at all.