clintonville short sales: Will the Mortage forgivness act be extended?
- 12/29/13 09:30 PM
This law runs out 12/31/2013. It allows sellers who complete a short sale to be forgiven any taxes due on the deficiency balance. For example if a home owner has a loan of $100,000 and the bank accepts a short sale payoff of $80,000, there is a $20,000 deficiency. This $20,000 has been exempt of income tax under this law. However, these amounts could be taxable if this law is not extended.
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clintonville short sales: Mortgage Debt forgivness extended to the end of 2013 for Clintonville
- 01/02/13 04:02 AM
Mortgage forgiveness tax treatment gets one more year As part of the fiscal cliff deal, Congress extended the cancellation of mortgage debt relief provision for one year, through the end of 2013. President Obama is expected to sign the legislation into law shortly. The law – which was set to expire at the end of 2012 - is crucial to foreclosure mitigation efforts such as principal forgiveness and short sales. Normally, U.S. law decrees that when a lender forgives all or a portion of a borrower’s debt, the forgiven amount is considered taxable income for the borrower. This is known as … (7 comments)
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This law runs out 12/31/2013. It allows sellers who complete a short sale to be forgiven any taxes due on the deficiency balance. For example if a home owner has a loan of $100,000 and the bank accepts a short sale payoff of $80,000, there is a $20,000 deficiency. This $20,000 has been exempt of income tax under this law. However, these amounts could be taxable if this law is not extended.
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