Short Sale Tax
Sacramento Short Sales will become taxable in 2013
, Loan Modification Tax
and Foreclosure Tax…
And you thought your only problem was a mortgage that had bloated out of hand…
Forth Hoyt, Certified Sacramento Short Sale Agent
The Mortgage Debt Relief Act of 2007
will expire on December 31 2012.
Now the IRS is going to want to tax you at regular income tax rates, for the mount the banks write off in your foreclosure, loan modification or short sale
Directly from the IRS Website: The Mortgage Debt Relief Act of 2007
generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. (Mortgage restructuring includes loan mods and short sales
According to the RealtyTrac’s Q3 U.S. Foreclosure Sales
Report. Another are still another 12.5 million borrowers who are “underwater” on their mortgages, and at risk for strategic default.
Many say the Mortage Debt Relief act will definitely be extended
, it still has a chance to be extended before it sunsets, and could even be extended “after the fact” and be put into law retroactively…
But if it isn’t, is a short sale still the best solution? Nearly every single time!
Considering a Short Sale in Sacramento El Dorado or Placer County
? Questions on your particular situation?
Contact us Today At Forth Hoyt’s Sacramento Short Sale Center