Re: help!!! CA deficiency judgement
Posted by MDRealest8 on December 25, 2007 at 22:01:38:
In Reply to: help!!! CA deficiency judgement
Posted by worried homeowner on December 19, 2007 at 16:07:59:
Dear "Worried Homeowner"
As of 12.20.2007 the answer to your question is NO!
For those who have not heard the most recent news about Deficiency Judgements and the issuance of 1099's; here is some great "Breaking News."
The Mortgage Forgiveness Act of 2007 was signed into law on December 20, 2007 and is now official. This is effectively getting rid of the question, "Will I be taxed on the Short Sale?"
Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was potentially taxable income to the borrower. This was the subject of much media attention and led to many questions and concerns from Sellers wondering whether or not they were going to get “hit with taxes” on the Short Sale.
The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009.
This will effectively put an end to the question . . . "Will I be taxed on the Short Sale discount?" The definitive answer (at least until the end of 2009) is NO!
You can also see it here reported on www.realtytimes.com as well.
Click on: "Washington Report: Legislation Finally Passed".
I hope this NEW temporary law will truly help those who need it. Good Luck and Happy Holidays
Follow Ups:
- Re: help!!! CA deficiency judgement - worried homeowner 14:53:37 01/08/08
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