Short Sale Seller’s Tax Break Ends 2013
[caption id="attachment_5993" align="aligncenter" width="262"] When Does the Mortgage Debt Relief Act end? Will I owe taxes on my short sale?Mortgage Debt Relief Act 2007 sunsets soon.[/caption] Is there Tax due after a short sale? Mortgage Debt Tax Relief To Sunset? When does the Short Sale Seller's Tax Break End? Troubled Sacramento homeowners who's short sale closes after Dec.31, 2013 will still get a break from their mortgage lenders, but could face a hefty tax bill next year after key provision that expires at the end of the year. Homeowners who live in California states, like California, where mortgages are non-recourse—that is, where they aren’t personally liable for the unpaid balance—may avoid the potential tax hit even if Congress doesn’t act, according to a letter sent by the...
Folsom Short Sale Specialist Announces Debt Relief Act Extended
[caption id="attachment_5900" align="aligncenter" width="400" caption="Mortgage Tax Relief Extended"][/caption] California state Taxes after short sale Folsom Certified Short Sale Specialist: what about California's Mortgage Debt Relief Act? Short Sales, Foreclosures and loan modifications are still non taxable events as far as federal taxes are concerned... the Mortgage Debt Relief Act of 2007 provisions have been extended. Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. The “American Taxpayer Relief Act of 2012’’ extends mortgage cancellation relief for home owners or sellers who have a portion of their mortgage debt forgiven by their lender, typically in a short sale or foreclosure sale for sellers and in a modification for owners. Without the extension, any...
California Short Sale Tax – What are the California Short Sale Tax Rules?
[caption id="attachment_19183" align="aligncenter" width="300"] Phantom Income From a Short Sale... - Is it Taxable in California?[/caption] Sacramento Short Sale Specialist Reports: I used to hear it all the time, now most people know that the amount written off by the bank is actually income! The IRS/California franchise tax may tax you on the amount of the forgiven debt! "How could I owe taxes on a short sale?" So I may owe taxes on on a short sale? Taxes on what? I didn't make any money! What are the California Short Sale Tax laws? Short Sales and Cancellation of Debt The IRS and State of California may tax you on the amount of the forgiven debt. (Forgiven debt through foreclosure, with a loan mod or Short Sale.) Questions on...
Short Sale Mortgage Debt Relief: Taxed In 2013
[caption id="attachment_5851" align="aligncenter" width="500" caption="Sacramento Short Sales will become taxable in 2013"][/caption] Short Sale Tax, 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 explains: 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...
Mortgage Debt Relief Act Extended News
Folsom Short Sale Agent and Experienced Folsom Short Sale Specialist answers the question: Has the Mortgage Debt Relief Act Been Extended? Here’s some good news for financially stressed homeowners looking for options: Five years ago, Pres. Bush Signed the Mortgage Debt Relief Act of 2007, that would prevent households from having to treat certain types of forgiven mortgage debt as taxable income. Prior to the law being passed, homeowners owed taxes after a short sale, taxes after a foreclosure and taxes on a loan modification. The Mortgage Debt Relief Extension could ultimately affect millions of families who are underwater on their loans, and heading for foreclosure, short sales or deeds-in-lieu of foreclosure settlements and loan modifications. Under the federal tax code,...
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