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September 2009 Archives

Tax Obligations on the Short Sale of a Florida Property

Ordinarily relief from indebtedness is taxable as income under the Internal Revenue Code. However, The Mortgage Debt Forgiveness Relief Act of 2007 was passed to benefit certain taxpayers, and excludes from income debt forgiven in the years 2007 through 1012. This may encompass up to $2,000,000 in debt forgiveness. One of the ways you may qualify for this tax benefit is through a short sale on your home. There are a variety of factors to consider in determining whether you may benefit from this tax act.

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