You can Count on us SANDIEGOHOUSESHOP.COM AT (619) 354-4636 or Click here http://www.sandiegohouseshop.com/contact to Reach a CHULA VISTA AND SAN DIEGO SHORT SALE SPECIALIST Hugo Sanchez Realtor
Mortgage
forgiveness debt relief act of 2007
Many
of our clients have asked if this act will happen to be extended.
As
a reminder this legislation ensures that homeowners who received principal
reductions or other forms of debt forgiveness on their primary residences do
not have to pay taxes on the amount forgiven, without it the debt forgiven on a
loan modification or short sales will qualify as income that is taxable to the
borrower.
In order to avoid that, you would have to
presently close that loan modification or
the short sale on or before December 31st 2012.
A few months back DSnews reported:
“Obama’s
FY2013 budget proposal includes an extension of the Mortgage Forgiveness Debt
Relief Act of 2007…
In
the Treasury’s Green Book, its summary explanation of the administration’s
budget proposal, it calls for an extension of the tax break due to “the
continued importance of facilitating home mortgage modifications.”
The
administration is proposing an extension that would apply to any amounts forgiven
before January 1, 2015.”
In
today’s date this could mean a great help for all the homeowners that have a
pending loan modification or short sale.
This budget proposal could be considered doubtful and both parties would
have to agree of this agreement be extended we can in the hope that Congress
get their act together and passes this provision.
Disclaimer:
we strongly recommend you do that for any tax issues you consult your tax
agent.
Contact us at http://www.SanDiegoHouseShop.com/contact
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