short sale taxesMy company has designed a new form for Sacramento short sale sellers to sign. It's a warning that if they don't close their short sale by December 31, they might have to pay taxes on the debt relief portion of that short sale. This form is designed for risk management. It's so no seller can come back to their agent or the broker next year and say, hey, you didn't tell me. Because there is no guarantee that a seller won't have to pay taxes on a short sale.

Many sellers are completely in the dark about short sale taxes. They are unaware that when they refinanced and took out a hard-money loan to fund that college education or pay off that medical bill or buy a pick-up truck, that free money is no longer free money when they sell.

There comes a time you pay the piper. Doesn't matter if it's your personal residence the loan is secured to, you can't pocket free money forever. If you do a short sale, you might pay taxes. You should talk to an accountant. Don't rely on hearsay or crap you read on the Internet. Go get tax advice from a competent source.

Read more about Taxes for that Sacramento Short Sale.

sacramento short sale agentcerfified hafa specialist

---

Certified HAFA Specialistelizabeth weintraub

 

equator certified platinum short saleequator certified platinum reo elizabeth weintraub

Elizabeth Weintraub reviews




Sacramento Real Estate Listings



Elizabeth Weintraub is an author, home buying columnist for About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

 

 

11 Comments on About Taxes on a Short Sale

SEP
07
321,258 Points Localism Sponsor Outside Blog

Hi Elizabeth,

I love having the form signed, we can never be too proactive w/risk management.

I also agree, let the tax professional do their job as well.
7:14am • #1
1,420,566 Points 41 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

What a great idea Elizabeth, I may start implementing it myself. .have a great day!

 
7:17am • #2
265,057 Points 3 Featured Posts Outside Blog Attended Rain Camp

We always strongly suggest that our short sale sellers talk to an accountant and a real estate attorney as a part of their decision process when they consider selling short.

 

There is a bill in congress that is designed to extend the forgivenesss of income tax resulting from a short sale. We cannot bet that Congress will pass this legislation which also includes additional tax ”extender”s.

 

You have got to love name of the bill: “Family and Business Tax Cut Certainty Act of 2012”. Here is a link to information about the bill.
7:25am • #3
224,194 Points 2 Featured Posts

I get blasted with a ton of questions about this. I send them to their accountant everytime.
8:10am • #4
1,518,070 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Bet Congress, IF they do pass this new bill mentioned by John, will wait until the last minute.
2:54pm • #5
217,902 Points 4 Featured Posts Attended Rain Camp

Great idea & advice, I can tell you definitely think ahead and document everything.
4:32pm • #6
987,760 Points 49 Featured Posts Outside Blog Called Shot Master

Elizabeth - It is always a good idea to cover your bases because you're right there will be short sale sellers out there who will claim they didn't know.
7:23pm • #7
SEP
08
668,926 Points 8 Featured Posts Outside Blog Hit Router Called Shot Master

Morning Elizabeth the government will get you one way or the other.  Sad to say but it is what it is.  Enjoy the day
1:48am • #8
984,549 Points 106 Featured Posts Localism Sponsor Outside Blog

Hey, John, thanks for that link. Yeah, there's a lot of stuff in that bill. And I do love the name, LOL. I am so not looking forward to AMT but I think it's gonna sneak up on me and bite me in the butt.
7:06am • #9
SEP
09
545,862 Points Outside Blog

Great post! Good information's!

Thank you very much for sharing,

Adam
2:36pm • #10
SEP
10
937,115 Points 51 Featured Posts Called Shot Master

I like the idea of the form. It not only provides risk management, but disclosure as well.  I especially like your recommendation about seeking advice from a tax professional.  There are a lot of moving parts rolling around on the table.  It will be interesting to see how it all shakes out, once this dysfunctional Congress gets back to "work." 
5:11am • #20

Login or register to leave a comment
 
Elizabeth-weintraub-500x500 Rainmaker_large

Elizabeth Weintraub, Sacramento Short Sale Agent, Land Park, East Sac, Lyon RE

Sacramento, CA

More about me…

Top 1% at Lyon Real Estate #00697006

Address: 2801 J Street, Sacramento, CA, 95816

Office Phone: (916) 233-6759

Cell Phone: (916) 233-6759

Email Me

Broker-Associate at Lyon Real Estate, midtown Sacramento. Selling since 1974. Home Buying Guide at About.com. Sacramento short sale agent.
Meez 3D avatar avatars games

Author Bio: Elizabeth Weintraub is a Sacramento real estate broker, author, home buying guide for About.com, a Land Park resident, and a Land Park agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully closes short sales throughout Sacramento four-county area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.

 


Listings

Links

Archives

RSS 2.0 Feed for this blog