Time is running out! The Mortgage Forgiveness Debt Relief Act
That's right, time is running out for those homeowners who don't want to get hit with a tax bill because they walked away, restructured or short sold their primary residence.
Back in 2007, while foreclosures were increasing & the number of short sales were spiking, Congress decided to provide some sort of relief to folks in this situation. The Mortgage Forgiveness Debt Relief Act of 2007 was passed & cancels the debt.
What is this cancelled debt? In the instance of a short sale, for instance, you owe $285,00 on your primary residence in San Antonio, Texas. Your Real Estate agent put's it on the market & it sells for $250,000. There's a difference of what you owe to the lender & what it sold for (in this case, $35,000) that usually would be reported as income & you would have to pay taxes on.
Thanks to The Mortgage Forgiveness Debt Relief you will not be taxed on the cancelled debt during the remainder of 2012.
If you owe more than what your San Antonio, Texas home can sell for or if you need help discussing your options, call, email or text me. There is still time to do a short sale before the end of 2012.
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