Congress Votes To Remove Taxing Forgiven Debt…Short Sales

December 19th, 2007 categories: Tips for Sellers, Short Sale Information

As expected, the Senate voted to OK doing away with taxing the debt relieved when someone short sells their home. The House had wanted a permanent change but the Senate went for temporary (3 year) relief. The House approved the amended bill.

The IRS normally treats forgiven mortgage debt as income and taxes it as such. So if you short sale your home (sell it for less than you owe, with note holder’s approval), you’d normally be taxed on that portion forgiven. Not for the next three years however. It’s just waiting for George’s signature.

More help from the government for folks who need to sell, but can’t payoff the loan because of declining values. Now, if they can only find a buyer…How much will the lender forgive?

Need further details on selling your home for less than you owe? Do you qualify? Call us for further information.

This entry was posted on Wednesday, December 19th, 2007 at 3:39 pm and is filed under Tips for Sellers, Short Sale Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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