Shortsale Tax Exemption Nightmare
Post date: Feb 06, 2014 6:45:28 PM
If you’re not aware, the Tax Exemption that saved people on huge tax consequences due to a short sale or foreclosure is gone. This could definitely put a slow down on the real estate market. The lack of this exemption could be the very thing that stops someone from going through with that short sale. These taxes can be devastating to people.
Consider it. If you do a short sale and you’re “short” $100,000 and you’re in a 30% tax bracket, there’s a nice $30,000 bill you weren’t prepared for. Yikes. Yeah, I’d be concerned if I was trying to sell right now and I didn’t have the equity to cover all my costs. So what do we do? Well, they can always reinstate the Act. They can even make it retroactive. But as of yet, there doesn’t seem to be anything happening.
So we’re recommending that you and your clients get involved and send a message up the Hill. Find your Congress person and send them a little email telling them to reinstate the Act and make it retroactive. If enough people do it, it will probably work. With elections coming around it will probably be something one of them will spearhead and get moving. Once it’s done we can get those short sales moving again.
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