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Forums » Wholesaling » New real estate tax laws.. tell me what you think..

New real estate tax laws.. tell me what you think.. Subscribe to New real estate tax laws.. tell me what you think..

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Shawn Vassel

Real Estate Investor · Connecticut


Forum_avatar_avatar-geodam

Jan 17, 07:06 PM

So I recently read that the real estate tax laws are changing as of Jan. 1st 2013 for those folks whos primary residence is sold through a short sale or foreclosure. They will be now be charged according to their tax bracket federal taxes on the amount that the bank forgives. Source: Hartford Courant sunday edition. Does that mean more motivated sellers for us wholesalers to avoid losing their homes through the bank process??


Anthony Y.

Real Estate Investor · Dallas, Texas


Forum_avatar_avatar-ants

Jan 17, 07:58 PM

Could be... but I don't think a lot of home owners are in tune with the tax laws until they wonder why the received a 1099


Greg B.

Real Estate Investor · Godley, Texas


Forum_avatar_avatar-runum

Donor Pro

Jan 17, 08:12 PM

I thought they have been doing that for a couple of years now. I definitely have heard of people calling into Dave Ramsey's show saying they got 1099'd for the short sale difference.

E-Mail: IBuy@ChargerProperties.com
Website: http://ibuyjoco.com/
Twitter: tuitionsource / I Buy Johnson County


Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado


Forum_avatar_avatar-wheatie

Moderator Pro

Jan 17, 08:20 PM

@Shawn Vassel you have this backwards. Forgiven debt has always been considered income by the IRS. The Mortgage Debt Forgiveness Act of 2007 was implemented to allow homeowners, under certain circumstances, to avoid the tax bill for this forgiven debt. That act expires at the end of 2012.

That said, like many "temporary" tax measures I would be it gets extended.

Small_flying-phoenixJon Holdman, Flying Phoenix LLC


Shawn Vassel

Real Estate Investor · Connecticut


Forum_avatar_avatar-geodam

Jan 17, 08:33 PM

@Jon Holdman Thanks for the clarification. I was reading my local sunday paper and I came across that article and it got me thinking. Im sure your right, if there is a law that prevents this from kicking in then im sure it will get extended. If someone cant afford their mortgage and are being foreclosed on, they def wont be able to afford a extra tax bill.


Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado


Forum_avatar_avatar-wheatie

Moderator Pro

Jan 17, 10:32 PM

There are also a couple of existing ways to avoid the tax bill. They're described on the page I linked. Insolvency and Bankruptcy.

Small_flying-phoenixJon Holdman, Flying Phoenix LLC




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