Updated almost 14 years ago on . Most recent reply
New real estate tax laws.. tell me what you think..
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??
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#3 Real Estate Deal Analysis & Advice Contributor
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- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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.