As part of the fiscal cliff deal Congress passed last night the Short Sale Mortgage Debt Relief provision was extended for one more year through the end of 2013.
This is good news for those who are selling homes as short sales.
Without the extension short sellers were facing the prospect of a tax liability on any forgiven mortgage debt. This law applies only to first homes.
If you are considering selling your home as a short sale sale, please give me a call or send me an email to discuss the process.
As always you are advised to consult an appropriate tax adviser regarding tax issues relating to the purchase or sale of real estate.