Mortgage Forgiveness Tax Relief Act
Posted by Tracy Jones on Wednesday, December 31st, 2014 at 4:28pm.
The Mortgage Forgiveness Tax Relief Act has passed the House and Senate and is on the way to President Obama for approval. This is great news for anyone who has sold their home in a short sale. Common practice is that the seller involved in a short sale would receive an IRS 10-99 for the amount of loss the bank has incurred which would require them to report that amount as income. This is so ironic because the Seller is clearly in financial distress to begin with. It is insane to have them have to pay taxes on the losses as income.
Fortunately, the Mortgage Forgiveness Tax Relief Act will help underwater home owners who sold their homes in 2014 when it involved mortgage forgiveness or a workout, once the bill is signed by President Obama.
One should always rely on a competent accountant or attorney for tax and legal advice.
For more information on short sales, contact Gulf Shores Realty at 941-488-6644 or visit http://gulfshoresrealty.com/ .