Thousands of California Sellers May Get Tax Relief
Under the Mortgage Forgiveness Debt Relief Act of 2007, under certain circumstance a home owner who sells a home as a short sale or loses it in foreclosure may have a write off for the forgiveness of debt which results in a 1099.
However, California homeowners who had a short sale or foreclosure in California, were unable to apply a similar deduction to their state taxes, at least until now. The result was that those who were in great need of a tax deduction, were being taxed on forgiven debt, on money they did not actually have in hand.
The bill has passed the California legislature, and Governor Schwarzenegger has said that he will sign the bill which is expected to effect approximately 34,000 Californians.
Are you upside down in your home? Are you facing foreclosure and would like to know your options? Please contact me at 714.319.9751.
We are not CPAs nor accountants and are not offering tax advice. Please discuss this matter with your tax professional to learn if this bill may effect your taxes.
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes. Click the link if you are interested in buying a home at a courthouse auction sale.
Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
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