Great news from a letter I just received…
As we anticipated, C.A.R. today received a letter from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.
Category: Taxes
Should I Short Sale My Underwater Home in the East Bay Area or Tri-Valley of California Now? Most Likely Yes. Do I have to Pay Taxes if I Short Sale My Home? Maybe.
Should I Short Sale My Underwater Home in the East Bay Area or Tri-Valley of California Now or Wait and Short Sale Later?
Do I have to Pay Taxes if I Short Sale My Home?
What is THE PRINCIPAL RESIDENCE EXCLUSION?
What is THE INSOLVENCY EXCLUSION?
The Principal Residence Cancellation of Debt Exclusion Extended through 2013!!!!
It it important to know how the different federal and state laws may apply to you and how you can use them in your benefit to avoid paying taxes of the cancelled debt of your under water property. This document goes into detail of that by sharing notes on the subject from the 2012/2013 Fall Federal andCaliforniaTax Update Seminar Real Estate Spidell Publishing, Inc.® 7-16-7-19 ©2013
Should I Short Sale My House in Livermore, Danville, Pleasanton or the Tri-Valley Bay Area Now or Wait?
Now is the time to short sale your Livermore, Danville, San Ramon, Pleasanton, Dublin, Tri-Valley or Bay Area California home. Do not wait! The Mortgage Forgiveness Debt Relief Act and Debt Cancellation ends at the end of 2012! “The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.” This means that if you short sale your primary residence, then you should not have to pay taxes on the forgiven debt! If you wait, you may end up owing taxes on $100,000 or more of forgiven debt if your home forelcoses or closes escrow in 2013 or later! Robin Watson-Bird is a very experienced short sale agent who has closed so many short sale transactions that she has earned the designation of Short Sale Genius Elite Master! Contact Robin today for a free consultation: 925-289-1432.
Experienced Short Sale Agent in Livermore, Dublin, San Ramon, Danville, Alamo, Walnut Creek, Martinez, Antioch, Brentwood, San Jose, Fremont, Tracy, Milpitis and beyond!
Home Buyer Tax Credit Extension Stuck in the House
The bill to extend the buyer tax credit passed the Senate, but is now sitting in the House of Representatives, where it is expected to pass should it actually get voted on in time.