If you went through a forclosure or short sale on your principal residence and received the 1099C showing cancellation of debt income, the IRS has a tip about how to avoid taxability of this amount and having to put it on your individual income tax return. See this tip here:

http://content.govdelivery.com/accounts/USIRS/bulletins/aa3d6c?reqfrom=share

Now remember this will only work on a principal residence forgiveness, not on credit card, rental property or second home debt cancelation. Call or email me with questions.

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