Short Sales and IRS Form 1099C

It’s that time of the year again. Many of us are picking up our mail and trying to get our tax documents together so we can prepare and file our 2010 returns.

Short Sales and IRS Form 1099C

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If you completed a Short Sale of a house in 2010, you will likely received an IRS Form 1099C showing the amount of debt that was cancelled in the Short Sale process. Don’t panic! The Mortgage Forgiveness Debt Relief Act applies to debt forgiven in calendar years 2007 through 2012.

According to the IRS website:

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

The best course of action is to contact your tax preparer or CPA, or you can download IRS Publication 4681 for guidance on the topic.

Good Economic News for Plano Texas

There’s some good economic news for Plano and Collin County, Texas.


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Phil Dyer, Plano City Mayor, recently told a group of real estate professionals that the city cut $14m from the 2011 city budget for fiscal year 2011 beginning October 1, 2010. Even better was that this was done without raising local taxes.

In other good news, economic development is alive and well in Plano and Collin County. Collin County is on the short list for a number of corporate moves:

  • Cigna facility opening bringing in 1000 new jobs
  • Tech Tronics – 450 new jobs
  • Wallway Tech – leasing 1.3m square foot facility in plano
  • Pizza Hut World Headquarters – 600 new employees
  • Danbury Resources – 300 new jobs moving here from Ft. Worth

Tom Branch, Broker, CDPE, SFR