Short and Long Sale Investment Property

I have a lot of customers that make me want to short sell their property investment, they are generally concerned about the short sale tax burden on the IRS-AKA for the money an investor ever. As most of you know if your home is a principal residence, the debt of the act of Congress keeps a house. Basically, the Lender sends C to 1099 the losses of assets (which, in turn, suggests the return of the house for additional income, although this phantom income ") - as the principal residence of the IRS has a form that inhibits this phantom income. However, as the investors that debt cancellation does not exist. What are your choices as an investor, struggling with the property and lose money every day? If I have an investor client, these steps suggest they take: 1st Find your loan documents to see if your lender has the right to bring an action against you for any defects or just the property 2nd In addition to the loan documents to verify that it is non-recourse loan (Termination of debt, "EUR IRS-IRC SECTIONS 108 and 1017), non-recourse loans are not taxable 3rd Talk to your tax accountant, tax accountant I spoke with Randy Kiesel, Chandler, AZ stated that a short sale if the owner can demonstrate technical insolvency, there is no tax liability (see explanation below Bankruptcy) 4th Analyze the loss if you have lost more than 15% of the value I offer my clients think about the percentage of sales of property 5th Determine whether you can buy two years less than the amount you owe on the property. Calculate the 3% increase over the next two years. (I have been lenient by allowing the appreciation over the next two years) 6th Make your decision if you can sell with no tax liability, in my opinion, it is a good choice. Start with a new investment of the new features of low market prices for homes. Keep in mind that short sales require to prove difficult, you can no longer afford the property, health problems, divorce, etc. So what is the technical insolvency, show that your debt is more than fair market value of its assets. It must be demonstrated at least short-sale. Today the real estate market, if you have multiple properties, it is probably easy to show greater debt than assets. Most of the homes lost to Arizona 25-50% of the value of your home, it certainly does not rule out the possibility of investors. Investors, I suggest you speak with your tax accountant to determine if you have any tax liability. Would not it be a better option to sell now, cut your losses and buy at reduced prices over the next two years?