If you an Idaho homeowner who is still trying to hang on to their homes and figure some way to make it work, I applaud you for the effort but now is the time to make the hard decision.
Unless it is extended by congress the Mortgage Debt Relief Act of 2007 is set to expire Dec 31, 2012. This act "generally allows taxpayers to exclude income from the discharge of debt on their principal residence," according to the Internal Revenue Service. So in the absence of this act, the amount that is forgiven, either in a foreclosure or a short sale, will taxable on federal income taxes. YIKES! That could be huge, if a house sold for $50,000 less than what is owed, homeowners would owe taxes on that $50,000.
So Idaho homeowners, you need to decide now what you are going to do-to give yourselves time. Short sales can take an extremely long time and if that is the option you are going to do, you need to start TODAY.
If you are able to stay in home great, but if it just not going to be possible, I have completed numerous successful short sales, give me a call.
I am not a tax or legal professional and I encourage you to contact a tax and/or attorney to review your options.
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