Short Sale Debt Cancellation Set To Expire At The End Of 2012

short sale forgiveness reno nvThe Mortgage Relief and Debt Forgiveness Act of 2007 is scheduled to expire on December 31, 2012. With short sale time frames ranging from 4-10 months we’re coming up on decision making time for under water homeowners in Reno and Sparks, NV.

As of today, there aren’t any talks from NAR about pushing for an extension but in an election year you never know what can happen. Your decision may come down to trusting the powers in D.C. to extend or taking what they have already given.

How does the act work?

You short sell your home for $100,000 with $200,000 remaining on the loan. If the bank doesn’t come back for a deficiency judgment you’re on the hook for $100,000 in that tax year in the form of a 1099-c.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation allows you to cancel this tax by using Form 982, the Reduction of Tax Attributes Due to Discharge of Indebtedness.

The Act doesn’t apply to all debts so check Publication 4861 to see if you’re eligible.

For more information on Reno and Sparks short sales contact Ricky at (775) 750-1437 or Ricky@Resnv.com

*The preceding was for information purposes only. Renown Real Estate Services and Broker Ricky Beach do not provide financial or legal advice. All parties are advised to seek profession help from a qualified CPA and/or legal counsel.*

Ricky Beach

Broker/Owner|RealtorŽ|CDPEŽ|SFRŽ

Renown Real Estate Services

6900 South McCarran Blvd., Suite 3040

Reno, NV 89509

| Office:(775) 313-9600 |  Cell:(775) 750-1437  | Fax:(775) 562-4779  |


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