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SHORT SELLERS! TAX EXEMPTION EXPIRING AND MUST ACT NOW relief Full view

SHORT SELLERS! TAX EXEMPTION EXPIRING AND MUST ACT NOW

Thinking about short selling sometime in the next few years? What if I were to tell you that if you wait even a couple of months, you may have to pay 10-100K AFTER the short sale closes. Why? Taxes. When you sell your home for less than what is owed, they consider the forgiven amount “taxable income.” Fortunately in 2007, our government issued a tax exemption act for struggling homeowners called the Mortgage Forgiveness Debt Relief Act of 2007. Unfortunately, this act will be expiring on Dec. 31st of this 2013 year.

This act was extended last year due to the sheer volume of short sellers out there. There are fewer short sales in this 4th quarter of 2013 and the government certainly needs the funds this year.

If you are thinking about short selling or would like to know how much your home is worth in today’s market, contact our team here or feel free to email me personally at peter@seattleshortsaleblog.com

Hope this helps

Peter

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