The deal to avoid the socalled "fiscal cliff" is overall pretty disappointing to me. It's really just kicking the can down the road and indicates the true seriousness of the problem we have in Washington with BOTH parties.
However, the one thing I was happy to see, both from a business and personal point of view, was the extension of the moratorium on "phantom income". To me, it is ridiculous to think that dropping a price constitutes income. It is even more ludicrous to beat people who are already on their last leg over the head even more. It should, in my humble opinion, be dropped permanently since it was a mistake to begin with, but someone has to pay for the "bridge to nowhere".
Thankfully, for another year at least, we can continue to lower the housing inventory through short sales without the potential tax liability to the seller.
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