IRS Publication 4681: Canceled Debts, Foreclosures, Reposessions & Abandonments

Those who are trying to figure out how to handle the tax ramifications of a cancellation of debt on a short sale, foreclosure sale, loan modification, or any other debt cancellation might want to consult IRS Publication 4681: Canceled Debts, Foreclosures, Reposessions and Abandonments.

For more from the IRS on cancellation of debt, see:

• IR-2008-17 - Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form,
• The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. short sale income tax