AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Hi. My spouse and I currently hold a mortgage with my mother in law on it, as well. We were trying to refinance to get my mother in law off of the loan, but cannot because the house is now valued less than the mortgage. We have only lived in the home since Nov of 08 and the value then was above what we had take out the mortgage for. We are now in the process of possibly short saling our home due to cut in income and personal hardship.Can you tell us what the tax ramifications are as far as a 1099 and how we may avoid this? Also, since my husband and I do not have many assets, we are not overly concerned with short saling, but as for my mom in law, she has many, and would not want the IRS to come after these. Can you advise of how we can find out more information on this serious situation? I thank you very much.
Answer Eva,
Thanks for your question.
Since you have not lived in the home for 24 of the past 60 months, you do not qualify for an exclusion.
You will owe tax on the difference between the amount owed and the proceeds from the sale. You will have to check with the lender to see if they will issue a 1099 just in you and your spouse's name and SS number or if they will also issue one to your mother-in-law.
