Will Congress give retroactive Short Sale tax breaks to the to 2014 and resolve it in 2015?
Anna McClusky 11/19/14
The Mortgage Forgiveness Debt Relief Act (MFDRA) expired December 31, 2013. This tax break offers forgiveness for homes that are short sold, and the remaining debt that was forgiven is taxed similar to capital gains, leaving some home owner's, already struggling with a huge tax burden!
The Senate Finance Committee voted to approve the break for the 2014 and 2015 tax years. However, provision remains part of a larger package of expired breaks that is bogged down in Congress. Experts in the industry seem to agree that action to extend, modify or terminate the Act is doubtful until after the 2014 midterm that just past in November.
If you are underwater on your home mortgage and need to sell your house, what do you do?
IRS “Insolvency Clause” Offers Tax-Saving Alternative
Here’s an example of how the Insolvency Clause works-
Here’s an example of how the Insolvency Clause works-
