Las Vegas Short Sale Attorney – Tax Consequences
The Law Office Rodney K. Okano is here to help you through the Short Sale process. A Short Sale is both a real estate transaction and a debt settlement process. You need to have an experienced Attorney on your side. To schedule a free consultation with an experienced Short Sale Attorney at the Law Office of Rodney K. Okano, call (702) 566-3600Tax Consequences of a Short Sale
Homeowners whose mortgage debt was partly or entirely forgiven during 2007 through 2012 may be able to claim special tax relief according to the Internal Revenue Service.Acting IRS Commissioner Linda Stiff stated, “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”
Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. The debt must have been used to buy, build or substantially improve the taxpayer’s principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief under Mortgage Forgiveness Debt Relief Act. In some cases however, other kinds of tax relief may be available, for example relief based on insolvency or bankruptcy.
Las Vegas Short Sale Tax Consequences
The Law Office of Rodney K. Okano will guide you through the entire short sale process. We work with Las Vegas’ top real estate professionals to get your house listed and a buyer located as quickly as possible. Once an acceptable offer is made, we present your short sale package to your lender in the most favorable light possible. Our years of legal practice and ability to offer you all options make us uniquely qualified to obtain you the most favorable outcome possible.To speak with a Attorney to explore all of your options on Short Sale Tax Consequences,contact the Law Office of Rodney K. Okano in Las Vegas, Nevada. For assistance, call (702) 566-3600.
