Short Sale Tax Exemption Could End Soon
October 17, 2012
Short Sale Tax Exemption / Mortgage Debt Relief Act of 2007 is set to expire on December 31st, 2012. If you’re wondering what I’m talking about and have had any portion of the mortgage on your principal residence forgiven by a lender or plan to in the coming year, you should read this article. For more information on Short Sale Tax, visit our article: “What is the Short Sale Tax?” For the last 5 years, the Mortgage Debt Relief Act of 2007 has allowed borrowers who fall into this category to fill out a form come tax time that keeps this forgiven loan amount from being taxed as income. Without this Act, these borrowers could have faced a potentially huge...