Las Vegas, NV – January 14, 2012 – (RealEstateRama) — As part of the fiscal cliff deal, the Mortgage Debt Forgiveness Act of 2007 has been extended for one more year and will now expire on December 31, 2013. The relief act’s extension was seen as vital to the recovering housing market. Under normal circumstances, debt forgiven as a result of a short sale or mortgage modification would count as income for tax purposes. For instance, if somebody owes $250,000 on their mortgage and their lender agrees to a $200,000 short sale, $50,000 in debt is forgiven. This would have been taxable without an extension of the law.
Additionally, the National Association of Realtors stated, “The exclusion from taxes for gains on the sale of a principal residence of up to $500,000 ($250,000 for individuals) remains in effect, so only home sellers whose income is $450,000 or above and the gain on the sale of their house is above $500,000 would pay taxes on the excess capital gains at the higher rate (with corresponding numbers for individual filers). For the vast majority of home sellers, there is no change.”
Realtors and Brokers cannot give tax advice. Specific tax questions should be directed to an experienced CPA, however, based upon the extension of the Mortgage Forgiveness Act, the business and tax ramifications of doing short sales did not change from the past 5 years. If you are in the process of doing a short sale or considering one, a significant obstacle has been cleared. Additionally, if you have been on the fence and not sure what to do, now is the time to act! As long as your short sale closes before the end of 2013, you will likely be protected by the Mortgage Debt Relief Act and not responsible for taxes on the forgiven amount. Don’t wait any longer. Take advantage of this law while you still can!
A recent report named The Myers Team the #1 Short Sale Realtors in Nevada. Number one status was determined by actual short sale listings closed from January 1, 2007 through December 31, 2011.
While The Myers Team with The Caliber Realty Group are NOT attorneys nor qualified to offer legal advice, they are nationally recognized as one of the most influential figures in real estate today. The Myers Team with The Caliber Realty Group has sold more short sale listings than any Realtor or Broker in Las Vegas. Myers Team Owners, Bill and Francoise Myers have helped hundreds of Las Vegas families avoid foreclosure. Myers said, “Sellers facing foreclosure must remember that banks are not looking out for you or your family. When you work with The Myers Team, our job is to get between you and the bank. We represent our clients, NOT the banks. It is our job to take away the stress and negotiate the best possible outcome. Ultimately, our job is to help our clients get a fresh start.”
Visit The Myers Team web site at http://www.NevadaShortSaleInfo.com
Additionally, please visit http://www.VegasShortSaleInfo.com