Let’s hope it does! It expires on December 31st, 2012
Last weekend NAR – The National Association of REALTORS® sent out a call to action to its million-plus members urging them to support an extension of tax relief on mortgage forgiveness.
Under federal law, cancelled debt is generally considered taxable income. Since 2007, however, the Mortgage Forgiveness Debt Relief Act has exempted home owners from paying taxes on the amount of money their mortgage lender forgives as a result of a loan modification, short sale, or foreclosure. The act is due to expire at the end of the year, but the bill would extend the relief through 2014.
“Over a quarter of all transactions still involve distressed properties. That is why you must take action now,” the association said in an e-mail sent Sunday. “Homeowners shouldn’t be forced to pay a tax on money they’ve already lost with cash they never received.”
I totally support the extention of the tax relief. Homeowners are hurting enough and still need as much help as possible. I am hoping president Obama extends the Tax Relief and give my short-sale sellers one less thing to worry about. To find out what your home is worth or to find out if you qualify for a short sale, please contact Karen Smith a RE/MAX CDPE – Certified Distressed Property Expert serving Cobb, Paulding and Cherokee counties.