Why does now appear to be a good time to sell your home if you were planning a short sale?
When you sell a home in a short sale or lose your home in foreclosure, your lender will often send you a 1099 for the amount of their loss at the end of the year.
Just think of it. You sell your home and lose everything only to be hit with a tax bill for the money the bank lost of forgave. WOW!
This was happening all the time until Congress passed a law a few years back that forgave this tax obligation for most families.
Guess what?! That law expires at the end of this year.
So, if you are going to sell your home in a short sale, this is the right time unless you like to gamble with Congress's willingness to take action in an election year.
IMPORTANT NOTE: Tax information above was provide by Cindy Lazares, CPA on Jan. 25, 2012 in her talk "2012 Tax Update and Planning." For details on all tax matters, please consult a licensed tax professional.
Licensed Tax Professionals I trust the most:
Anita Steburg (Steburg Law Firm)
Attorny at Law
Judie Rogers (Books n Taxes)
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