Finance

What is a 'short sale' in Oregon real estate and what are its tax implications?

AA quick sale completed in less than 30 days
BA sale where the lender agrees to accept less than the full amount owed on the mortgage; the forgiven debt may create taxable income for the seller✓ Correct
CA sale where the buyer pays cash without financing
DA foreclosure sale with a shortened auction period

Explanation

A short sale occurs when a lender agrees to accept less than the outstanding mortgage balance as full payment in a sale. The difference (deficiency) may be considered ordinary income (debt forgiveness income) unless an exclusion applies (e.

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