Raleigh NC – The Mortgage Forgiveness Debt Relief Act of 2007 allows most people to short sale their home and not owe any income taxes on the forgiven debt.
However, there are a few situations where a homeowner may still owe taxes after a short sale.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
According to the IRS’s Website, here are the following situations where you may owe taxes after a short sale or foreclosure.
* If you are being forgiven of more than $ 2 Million on your principal residence.
* If you are being forgiven of more than $ 1 Million on your principal residence and you are a married person filing a separate return.
* If the debt being forgiven was from a refinance and the proceeds of the refinance was not used to improve your residence.
(If you refinanced your house and used the money to improve your residence, then you wouldn’t be taxed on the forgiven debt. I would talk to an accountant to get all the details before trying this strategy.)
* Forgiven debt on second homes and other properties that are not your primary residence are not eligible for tax relief under this law.
There are other ways to get tax relief, but they are not covered under this law. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at ken@goldensrealty.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (919) 606-8751
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Raleigh loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Ken Smith.
Ken is a Real Estate Broker at Goldens Realty. Raleigh Short Sales Realtor:
Phone: (919) 606-8751. ken@goldensrealty.com.
Friendly, loyal, intelligent service!
View My homes for sale at www.GoldensRealty.com.
Ken Smith specializes in loan modification assistance and short sales in Raleigh North Carolina. Raleigh Loan Modification Help, Raleigh Short Sales. Raleigh Short Sale Realtor. Raleigh NC Short Sales. Raleigh Realtor.
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