California  |  Real Estate Law

Legal Question

Asked on: 5/15/13, 5:04 pm

My wife and I own a condo in Los Angeles county (CA) valued at around $170,000. We purchased as a primary residence and lived in it for 4 years. We have two mortgages on the property (the second was a home equity line used to renovate the property), both totaling around $318,000.

We moved out of the condo 3 years ago because my family had grown, and no longer fit in the small space. We rent another townhome for ourselves, and rent our condo that we own to tenants.

My question is: If we engage in a short sale, will we be taxed on the difference of what we sell for versus what we originally owe (viewed as income)? Are we protected under the Mortgage Forgiveness Debt Relief Act? If not, are there any options that will cause us to be eligible that are within our control?

1 Answer

Answered on: 5/17/13, 10:02 am by Anthony Roach

My understanding is that the exemption only applies to a principal residence, not a former residence.

You may want to repost this in a category for taxation to get more attorney response.

Did you find this answer helpful?

0 Users found this answer helpful.

0 Attorneys agree with this answer.

Law Office of Anthony A. Roach 9909 Topanga Canyon, Ste.313 Chatsworth, CA 91311

Other answers from this attorney

Didn't find what you were looking for? Ask an Attorney!

Get answers from the top Attorneys
Ask Question

125 Answers given in the last few hours.

8663 Active attorneys ready to answer your question

Search Past Answers:
  Advanced Search