Foreclosure Tax Liability
The Mortgage Forgiveness Act of 2007 was signed into law December 20, 2007. This law effectively eliminated the question "will I be taxed on the Short Sale?"
Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was potentially taxable income to the borrower. This was the subject of much media attention and led to many questions and concerns from sellers wondering whether or not they were going to get “hit with taxes” on the Short Sale.
This law, however, only temporarily waives these taxes for debts forgiven (as high as 35%) through the end of 2012.
This means when we negotiate with your lender to eliminate your debt, you will not be taxed on the amount of the forgiveness! As long as you act before the end of this year, you will, in most cases, incur no tax liability.
So, don't wait. Use the form on our contact page today. We'll be in touch with you, usually within 24 hours, to find out more about your situtation.
Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was potentially taxable income to the borrower. This was the subject of much media attention and led to many questions and concerns from sellers wondering whether or not they were going to get “hit with taxes” on the Short Sale.
This law, however, only temporarily waives these taxes for debts forgiven (as high as 35%) through the end of 2012.
This means when we negotiate with your lender to eliminate your debt, you will not be taxed on the amount of the forgiveness! As long as you act before the end of this year, you will, in most cases, incur no tax liability.
So, don't wait. Use the form on our contact page today. We'll be in touch with you, usually within 24 hours, to find out more about your situtation.
