If you are concerned about the tax consequences of a short sale make sure to contact a trusted Santa Monica Short Sale Agent. For homeowners that find themselves in a situation to short sale paying a large tax bill after selling a home may not be an option. Some of the top Santa Monica Short Sale Agent have an in-house CPA who specializes in real estate to help you determine your potential tax impact.
Given the decline in home prices since the top of the market homeowners who short sale are seeing thousands of dollars forgiven in debt. In the most distressed areas some Santa Monica Short Sale Agent has even seen hundreds of thousands of dollars forgiven through a short sale. Since this money has loaned out and not repaid it is treated as income by the IRS and will be taxed. Thanks to the Mortgage Debt Relief Forgiveness Act homeowners may be able to avoid this massive tax hit. Make sure your Santa Monica Short Sale Agent knows whether or not you will qualify for this great incentive. Homeowners should know that this Act of Congress is set to expire at the end of 2013 so time may not be on your side. On average a short sale will take four to six months from start to finish so make sure your Santa Monica Short Sale Agentknows if you qualify. The Mortgage Debt Relief Act was already extended through 2013 but there is no sign of another extension by Congress. If the property you are selling is an investment property and not your principal residence you may need to consult with a CPA. Finding a Santa Monica Short Sale Agent with a CPA on staff is a great way to find the best options for selling your distressed property.
So if tax consequences are holding you back from selling contact a Santa Monica Short Sale Agent today to discuss your options.