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Fantastic bombshell you must know about Santa Cruz County Real Estate

By Patti Lyles

Real Estate Agent with Century 21 Showcase, REALTORS® CalBRE#01385517

December 05, 2013 12:20 AM

A bombshell was released by a California Senator that no one yet seems to recognize how big it is -- until now.

Santa Cruz County Distressed Home Sellers Not Liable for Federal, State Income Tax on Short Sales

If you are a homeowner who sold a short sale, this article could be worth thousands in income tax savings.

If you are a real estate agent or other adviser, this knowledge could make you a real hero to your clients.

This is Big California Association of REALTORS announced it received a letter from the California Franchise Tax Board (FTB), obtained by Board of Equalization (BOE) member George Runner, clarifying that California families who have lost their home in places like Santa Cruz County in a SHORT SALE transaction are NOT going to be subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.

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Pamela Seley

West Coast Realty Division - Murrieta, CA

Residential Real Estate Agent serving SW RivCo CA

Patti, this is good news that California is on board with not taxing debt forgiveness for homeowners who short sell.

Dec 05, 2013 01:06 AM

Patti Lyles

Century 21 Showcase, REALTORS® - Santa Cruz, CA

DIVORCE, SHORT SALE, FORECLOSURE SPECIALIST

These letters will provide welcome relief for short sale sellers given that the tax break for a qualified principal residence under the federal Mortgage Forgiveness Debt Relief Act of 2007 will expire at the end of this year, and similar protection under California law already expired in 2012. The FTB letter includes transactions that closed in 2012 but, as always, sellers should consult with their own tax professionals.

Dec 05, 2013 01:18 AM

Nancy Laswick

United Real Estate - Phoenix, AZ

Your REALTOR® For The Valley Of The Sun

Patti, wonderful news for many distressed sellers in the Santa Cruz county, will this apply to all of CA?

Dec 05, 2013 02:47 AM

It applies to all of CALIFORNIA

Dec 05, 2013 03:13 AM

Eric Nelson, III

Silicon Valley Capital Funding - Campbell, CA

Eric O. Nelson, III

PAtty,

This is great news for all of CA - great post.

Eric

Dec 05, 2013 05:36 AM

Bill Reddington

Re/max By The Sea - Destin, FL

Destin Florida Real Estate

The IRS forgiveness for this expires 12-31-13. Need Congress to renew this. You may not pay in California but Uncle Obama may want his piece after 1/1/2014.

Dec 05, 2013 06:44 AM

C.A.R. has a "Call to ACTION" in place to ask our Congress Women to push this Mortgage Foregiveness extended.

This one for N.A.R. http://www.realtoractioncenter.com/realtor-party/get-involved/mobile-app-1.html?om_rid=AAB16l&om_mid=_BSoOlWB824ScdU&om_ntype=NARWeekly

Dec 05, 2013 07:04 AM

Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

This is very interesting. I was surprised that this is determined county by county rather than statewide.

Dec 05, 2013 11:56 AM

Fantastic bombshell you must know about Santa Cruz County Real Estate

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