What are the Tax Implications from a Short Sale
Tax Implications
Borrowers are often concerned about the tax consequences of a short sale. This is because, up until fairly recently, mortgage debt on a primary residence that was forgiven from a Short Sale or Foreclosure could be counted as “taxable income” by the IRS.
Please note that tax law is very tricky. It is vital that any borrower considering a short sale discuss their personal situation and any concerns about their mortgage indebtedness with a qualified CPA or attorney.
If you would like to learn more, the following links may be helpful:
- Mortgage Forgiveness Debt Relief Act
- Emergency Economic Stabilization Act of 2008
- Reduction of Tax Attributes Due to Discharge of Indebtedness
- Questions and Answers on Home Foreclosure and Debt Cancellation
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We can help sellers throughout San Diego North County and beyond to avoid foreclosure and walk away from their home without having to pay a penny, and without having their credit ruined by foreclosure or bankruptcy.
Some of the communities we serve are Encinitas, San Marcos, Carlsbad, Oceanside, Escondido, Rancho Bernardo, Poway, Vista, Valley Center, Fallbrook, and surrounding areas.