What Are the Tax Implications of a Real Estate Short Sale?
Q: What is the 2007 Mortgage Forgiveness Debt Relief Act?
The Mortgage Debt Relief Act of 2007 may allow a taxpayer to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, generally qualifies for relief.
Q: How long do I have to take advantage of this Act?
This Act applies to debt forgiven in calendar years 2007 through 2012.
For more information on the Mortgage Forgiveness Debt Relief Act, click here.
For more information on the tax implications of a real estate short sale click here.