Breaking News:
Just announced today… Government sponsored Making Homes Affordable HAMP and HAFA programs have been extended through December 31, 2015.
Here is the Supplemental Directive 13-04 announcing: sd1304
HAFA Short Sale Extended Through December 31, 2015
did short sale in may 2015 from mass will i have to claim it on my taxes.or have they passed the extention for debt forgivess for 2015
Michelle, From our experience, you should not be “on the hook” for taxes at the federal Level due to the extension of Federal Mortgage Debt Relief act of 2007. As far as the state of Mass…not sure? Check with at CPA licensed in Mass for that confirmation. Best,
Kris
Good afternoon, I too have a question me and my husband closed on our house may 2015 (short sale) and had a difference of 49,306.65 that the bank forgave. When we go to file our taxes this year are we going to have to come up with the taxed difference? If so how much are we talking about…. We live in NC if that helps….
Felicia, Thank you for your question. We are not tax specialists, CPS’s or attorneys so please seek guidance for your specific matter. In our experience, both Federal and state will require you to report this difference as income which your former lender will mail to you likely in a form 1099 no later than January 31, 2016. (If the lender fails to mail this form to you by this date, the lender is not in compliance with federal law.) This 1099 will show as “Income” and you may be required to pay taxes on this income at your state level (Understand your states laws as to short sales and taxes). However, due to the 2007 Mortgage Forgiveness act, you will likely not pay taxes at the federal level (1040 filings). We hope this makes sense. Please seek guidance on the tax laws for NC.
I have a question. We are closing on our short sale December 1st, 2015. The mortgage company has relieved us of our deficiency, but I wanted to know if we would qualify for the tax relief as the deficiency could be reported as income. This is our primary home and we were forced to shortsale due relocation.
Kelley, This program has been extended through December 2016. So you should be good to go. What state are you located?
I live in Georgia.
Hi, please for Florida is it extended to 2016??? I just closed in JAN 2016 and heard it was DEC2015 and am now in a panic.
Thanks!
Grace, The Mortgage Relief Forgiveness Tax Relief Act has been extended through 2016.
https://www.congress.gov/bill/114th-congress/house-bill/1002
Hope you find this to be good news!
Best, Kris