July 16, 2013
You probably recall the Mortgage Debt Relief Act of 2007 allows certain taxpayers to exclude income connected with the discharge of debt on a primary residence. This includes debt that has been reduced through the restructuring of a mortgage as well as mortgage debt forgiven in connection with foreclosure, short sale, or deed-in-lieu of foreclosure.
The recent extension comes as part of the vote that passed so we do not go over the “fiscal cliff.” This vote should motivate potential short sale sellers to list and sell their homes in 2013.
According to the IRS (Tax Tip 2011-44), here are 10 facts that the IRS wants people to know about Mortgage Debt Forgiveness. (Information courtesy of the IRS. Please check with your tax advisor/CPA regarding your specific situation.)
“The state Senate today passed C.A.R.’s tax relief bill without a single “no” vote. SB 30, which provides tax relief to those who are selling a home in a short sale, will now be considered in the state Assembly.
In late May, the Senate Appropriations Committee linked SB 30 to SB 391, a C.A.R.-opposed bill that creates a recording tax. This link, in the form of an amendment, says that SB 30 cannot take effect unless SB 391 does as well. While we are troubled by this transparent political maneuver meant to force C.A.R. to support the recording tax, C.A.R. will continue to work toward the passage of SB 30 in the Assembly, the defeat of the recording tax, and the delinking of the two bills.”
Again, check with your tax advisor/CPA for details regarding your specific situation.
Source: Short Sale Expeditor and IRS
For previous articles, visit www.sonjabush.com
Stay up to date on the latest real estate trends.
November 13, 2023
November 13, 2023
October 22, 2023
October 16, 2023
October 11, 2023
October 9, 2023
October 7, 2023
October 1, 2023
September 11, 2023
You’ve got questions and we can’t wait to answer them.