Unless you live under a rock or are just waking up from your New Year's Eve hangover you have undoubtedly heard that congress came to an agreement to help avoid the so-called "fiscal cliff".
The most notable aspect is the extension of the mortgage debt forgiveness. This was a temporary loophole in tax law that allowed for certain homeowners to be exempt from federal income tax on the amount of debt forgiven through short sale, foreclosure or loan modification. The new deadline is January 1, 2014.
The potential tax ramifications to most homeowners of paying income tax on an additonal $100,000 or more in income is pretty crushing for most people- and this is on top of whatever other financial burdens and hardships they are having. While this may not be the best news for our nation's deficit, it may be a step in the right direction to get our economy back on track.
This also comes as a relief to sellers who are in the process of completing a short sale on a home but weren't able to close before the end of the year.
If you are thinking a short sale may be the right option for you, call us today for a FREE no obligation consultation! We will help you look at your options and decide what is right for you.
This comment has been removed by the author.
ReplyDeleteVery informative content, this is very helpful information for real estate industry. hervey bay property sales
ReplyDelete