Short Sales and The IRS....how will a Short Sale affect you?
UPDATE: 9-4-09/ This law is good until 2012.
Another topic of concern for most people when they consider a Short Sale is "Will I have to pay taxes on the difference of the Short Sale?"
The Mortgage Forgiveness Debt Relief Act of 2007 was designed to forgive that amount that you are going to "Short"! Keep in mind that this only applys if you are going to do a Short Sale on a primary residence. Here is a great web page and link for you to read directly from the IRS:
http://www.irs.gov/individuals/article/0,,id=179414,00.html
This should provide you with the information you need to make a smart choice. Please feel free to contact me with your questions!
***BEFORE READING THIS PAGE, PLEASE REMEMBER THAT I AM NOT AN ATTORNEY, NOR CAN I GIVE OUT LEGAL ADVICE. THE FOLLOWING INFORMATION IS PUT TOGETHER SO THAT YOU HAVE A GENERAL IDEA ABOUT SHORT SALES. WITH THE LAWS CHANGING EVER SO QUICKLY, PLEASE SEEK OUT LEGAL AND OR TAX ADVICE FROM TRUE PROFESSIONALS THAT KNOW THEIR FIELD. MY FIELD IS REAL ESTATE AND LISTING YOUR HOME AND THEN HAVING THE BANK DRAW UP A RELEASE LETTER FOR SALE.