Do you need to get your Santa Monica short sale underway but keep putting it off for one reason or another? Well, if you want to take advantage of current tax relief programs the time to stop procrastinating is now. Santa Monica short sale specialists say that the Mortgage Forgiveness Debt Relief Act will be expiring at the end of the year and currently there has been no talk of renewing it.
The MFDRA is a tax relief program intended to help homeowners that complete a Santa Monica short sale on their home or lose their home to foreclosure. It’s a great program that has been around since 2007 and has saved thousands of homeowners significant amounts of money at tax time. When you complete a Santa Monica short sale, the IRS views your forgiven amount as taxable income and you are therefore responsible for paying taxes on it. Depending on your forgiven amount, this could equal thousands of dollars out of pocket for you. Thanks to the Mortgage Forgiveness Debt Relief Act, however, homeowners that complete a Santa Monica short sale on their primary residence are eligible for this tax relief program. There are, of course, other requirements and guidelines to being eligible for the MFDRA but they are pretty basic and a majority of homeowners are eligible for this program.
To find out more information about the MFDRA, to see if you qualify and to get the Santa Monica short sale process started in time to take advantage of this great tax relief program get in touch with a Santa Monica short sale expert as soon as possible. Remember, currently there is no talk of extending the MFDRA so if you want to save yourself thousands of dollars at tax time next year, now is the time to act on your Santa Monica short sale transaction.