Mortgage Forgiveness Debt Relief Act Expires Dec 31 2012!
By The Myers Team | Las Vegas Top Real Estate Agents, Nobody Finds BUYERS Faster Than The MYERS
(Simply Vegas Real Estate)
If you’ve been thinking about doing a short sale on your Nevada home, you might want to hurry up. The time is limited for homeowners who want to ensure they aren’t hit with a big tax bill because they had to walk away from a mortgage obligation. The Mortgage Forgiveness Debt Relief Act is set to expire on December 31, 2012. At the height of the housing crisis, Congress passed the Mortgage Forgiveness Debt Relief Act of 2007, designed to provide at least some consolation to folks who had lost their homes. In summary, the Mortgage Forgiveness Debt Relief Act states that if you borrow money (up to $2 million dollars) from a bank or a commercial lender and the lender cancels or forgives the debt (a.k.a. Short Sale) then you are not responsible for paying taxes on the forgiven amount. Thi...