Short Sale Tax implications update!
In this update on short sale tax implications we will address taxes on both on the federal and state level.
FEDERAL TAXES: On the Federal level, The Mortgage Forgiveness Debt Relief Act was renewed which will, for one more year, exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification (including any principal reduction).
C.A.R. is sponsoring SB 30 (Calderon, D-Montebello). SB 30 will conform state law to the federal law passed last week. Upon passage of SB 30, the measure will be effective retroactive to Jan. 1, 2013.
If you need any help with understanding Short Sale Tax implications when selling your home in Orange County please call me at 949-306-8416. I can help guide you through this process and help you find a solution so you can move on with your life.
To read more about how real estate taxes affect you see this page: REAL ESTATE TAX BREAKS