QUESTION
What is considered the primary residence for Mortgage Forgiveness Debt Relief Act?
Asked on Jul 21st, 2012 on Taxation - California
More details to this question:
I bought house #1 in 2004 & lived there until 2011. I bought and moved to house #2 in July 2011 & rented house#1 until now. I want to short sale house #1 due to severe depreciation and financial difficulties. Can I move back to house #1 during the short sale process and claim that house #1 is my primary residence for purposes of Mortgage Forgiveness Debt Relief Act? Both houses are in CA.
1 ANSWER
Your primary residence is your main home, the one you live at most of the time. So I doubt that house #1 is your main home yet.
Answered on Aug 13th, 2012 at 6:36 PM