Do I need to report a short sale on my taxes or is that the estate’s responsibility?
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Do I need to report a short sale on my taxes or is that the estate’s responsibility?
I was the personal representative for my mother’s estate. I recently received a
mortgage interest statement and a cancellation of debt from the mortgage company
that had the loan. Do I file that with my taxes?
Asked on February 13, 2017 under Estate Planning, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
As the personal representative, you would report this for the estate, on the estate's tax return. It was not your property, it was the estate's, and so the tax consequences of the short sale flow to the estate, not you. However, as personal representative, it is your job to take care of the estate tax return.
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