Solutions to tax forgiveness on short sales

short sale sign: forgiveness tax relief

Los Angeles property owners facing foreclosure are concerned about tax forgiveness on short sales. Homeowners who are concerned about their future do all they can avoid foreclosure. Fortunately for some, California has special provisions for those facing foreclosure. In preparing for a short sale, the sellers often ask: Are there exemptions from the taxation of cancellation of debt income? According to the California Association of Realtors, there are four circumstances under which the … [Read more...]

Update: Federal taxes on forgiven short sales

Update: Federal Taxes on Short Sales Forgiven in CA 2014   Since the Mortgage Debt relief act of 2007 expired in December 2013 there has been much confusion over the issue of the IRS tax on short sales in California.  Although we do not have a law currently in place defining the forgiveness of Federal Taxes on Short Sales in California for  2014 we do have a documented opinion from the IRS thanks to Senator Barbara Boxer. “The Internal Revenue Service Will Not Penalize California Families … [Read more...]

Federal taxes on short sales forgiven in CA

Federal taxes on short sales are still forgiven. The Mortgage Debt Relief Act of 2007 allowed taxable debt on your federal income tax to be forgiven on a short sale.  Try searching "The Mortgage Debt Forgiveness Act of 2007" on  web sites like Google  ,Yahoo or Bing.   You'll find the The Mortgage Debt Relief act of 2007 has expired. Does that mean you will owe money to the IRS on a short sale? Get the facts. The IRS will not tax you on a short sale in 2014 if you live in … [Read more...]

Why are we in this housing mess?

What is the cause of the housing mess?

OK so I talk at length on these subjects: the truth about loan modifications, foreclosure's impact on credit, the advantages of short sales and how the current real estate laws are in homeowners' favor. But what is the source of these problems? Is there an answer to why we are in this housing mess and the worst economic cycle since the great depression? It doesn't matter where homeowners live -- whether in Beverly Hills, Culver City or Westchester -- the question comes up. If the question … [Read more...]

FTC target: dubious claims made to short sellers

Many Westside families have succumbed to financial realities: As in, selling their homes in Playa Vista, Culver City or Westchester to avoid foreclosure. Or, if they're lucky, modifying their loans. In November 2010 the Federal Trade Commission issued rules to protect struggling homeowners, known as Mortgage Assistant Relief Services (MARS). The MARS rules protect homeowners from companies that offer mortgage foreclosure rescues and loan modification services by barring them from … [Read more...]