Thursday, January 8, 2009

Will You Owe Taxes on a Short Sale of Your Home?

When you sell your house for less then the remaining balance on the mortgage and the lender forgives the difference between the sale price and the amount your owe on the mortgage this is termed a "short sale." Normally forgiven debt like this is taxable as income. However, because of the current financial crisis an exception has been created for homeowners in the Mortgage Debt Relief Act of 2007.

No comments:

Post a Comment