Remember this could help you - The Mortgage Forgiveness Debt Relief Act - created to asistn short sellers, owners who lost homes through foreclosures or had their mortgage balance reduced through loan modifications.
When a loan is cancelled or forgiven through a short sale or foreclosure, the cancelled debt changes into taxable income - and the IRS wants a piece. Under this Act, qualifying mortgage debt forgiven through foreclosure, short sale or loan modification can be exempt from taxable income.
The forgiven mortgage debt must be a loan on your personal residence, and must be related to the purchase of your home. Consult your tax preparer to see if you qualify. CLICK HERE FOR MORE INFO
Remember, there are other tax credits, deductions and exemptions, longtime and brand-new homeowners should also look forward to claiming for basic closing costs (origination fees, taxes and points - oh my!), property taxes and mortgage interest deductions. jroosevelt@kw.com
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