Homeowners: The Mortgage Tax Relief Act …eliminating mortgage debt forgiveness expires Dec. 31, 2012.

If you’re in a situation where you owe more than your home is worth it might be time to act.  Currently the tax-relief act allows homeowners to exclude from income (for the sake of tax purposes) primary mortgage debt (1st trust deed) forgiven by their lender.(i.e short sale, short refi , foreclosure or deed in lieu). After Dec 31, 2012 if a lender cancels a home owner's debt, the IRS requires the debt be treated (reported) as "general income"...because the duty to repay it no longer … [Read more...]

Homeowners: The Mortgage Tax Relief Act …eliminating mortgage debt forgiveness expires Dec. 31, 2012.

If you’re in a situation where you owe more than your home is worth it might be time to act.  Currently the tax-relief act allows homeowners to exclude from income (for the sake of tax purposes) primary mortgage debt (1st trust deed) forgiven by their lender.(i.e short sale, short refi , foreclosure or deed in lieu). After Dec 31, 2012 if a lender cancels a home owner's debt, the IRS requires the debt be treated (reported) as "general income"...because the duty to repay it no longer … [Read more...]