Main Content

What Are Tax Consequences Of Santa Monica Short Sales?

If you are considering Santa Monica Short Sales but are concerned about the tax consequences I have great news for you. The recently announced  Mortgage Debt Relief Forgiveness Act has been put in place to protect homeowners across the country after their short sale is finished. Contact a short sale specialist today with all of your questions about the potential tax consequences and what can be done to avoid them.

The Mortgage Debt Relief Forgiveness Act was put in place by Congress in order to waive the taxes owed after a short sale. The mortgage debt that is forgiven in  Santa Monica Short Sales is considered to be income and therefore is taxed by the government. Given the adjustment in home prices since the top of the market this could mean thousands of dollars in taxes from the sale of your home. If you are in a position to complete Santa Monica Short Sales an extra tax bill is something you will likely want to avoid. It is important to note that this Act of Congress is set to expire at the end of 2013 so it is important that homeowners act fast. Santa Monica Short Sales on average will take three to four months to complete so it is important to not waste any time. Even if you are still current on your mortgage you may be able to complete a short sale in order to cash in on this great opportunity. The Mortgage Debt Relief Forgiveness Act was already extending once through 2013 but there is not guarantee that this will happen again. If you have other tax related questions surrounding Santa Monica Short Sales you may also want to contact a CPA. Many short sale agents in the Santa Monica area do have in house CPA‘s that specialize in real estate taxes.

If you have been holding off on Santa Monica Short Sales due to taxes now is the time to act. Contact a trusted short sale agent before it is too late. This incredible opportunity is running out of time but it is not too late.