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About Bill Iannelli
Expertise
Anything to do with residental real estate: Disclosure, title issues, buyer and seller representation, foreclosure, ethics, rentals, landlord rights, evictions, inspection, time frames, Arizona purchase contract.

Experience
20 years in the business. Broker owner of Iannelli and Associates. Have my own real estate radio show "Real Estate Matters" every Saturday afternoon at 1:00 on 1510 AM KFNN. Listen to past shows at my website www.realestatematters.org. Own my own portfolio of real estate, developer of apartments, commercial real estate and single family homes.

Organizations
National Association of Realtors, Member of both the Phoenix and Prescott multiple listing service.

Publications
Desert Advocate Newspaper Carefree Arizona. Question and answer column. Broker agent news, TV and radio stations.

Education/Credentials
Licensed Real Estate Broker, BS in Education, certified real estate instructor on the code of ethics.

Awards and Honors
Don't want to brag. Not important to the public. They want answers and advice not me telling them how many millions of dollars of real estate I have sold

You are here: Experts > Real Estate > Real Estate by Location > Real Estate: Arizona > short sale taxes

Real Estate: Arizona - short sale taxes

Expert: Bill Iannelli - 11/6/2009

Question
Hi Bill,

I have a question about short sale taxes on an investment property. Three partners and I bought a house in which everyone contributed evenly towards the down payment of 20% of the sales price and everyone contributed evenly towards the closing costs. I am the only one noted on the loan documents as well as the title. Who is responsible for the short sale taxes? Also, is AZ a non-recourse loan state?

Thanks,
Jim

Answer
If you are the only one on the title and note the IRS will probably make you responsible for the taxes. Check with an accountant to make sure. If you did not realize any gain from the property and the money was used for purchasing the home, you may or may not owe taxes. Arizona is a non recourse state but since this was a non owner occupied home the lender could come after you for the balance. Before agreeing to a short sale speak with the lender and find out what they intend to do if the property is sold via short sale. You will also need to speak with an accountant and real estate attorney before proceeding with a short sale.

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