IRS Letter To Senator Boxer On Short Sales Not Good News For Everybody

Categorized | STOP FORECLOSURE FRAUD

IRS Letter To Senator Boxer On Short Sales Not Good News For Everybody

IRS Letter To Senator Boxer On Short Sales Not Good News For Everybody

Forbes-

A recent IRS letter to Senator Barbara Boxer concerning the income tax implications of short sales by California homeowners seems to be provoking unqualified celebration. This headline – IRS Will Not Penalize Cali Families Losing Homes To Short Sales -is fairly typical. There was a lot of concern about this because at the end of 2013 the generous exclusion from debt discharge income when qualified principal residence mortgages are involved is set to expire. People losing their homes in a short sale is upsetting enough. The idea that they will end up with a tax bill if the bank does not pursue a deficiency judgement is really upsetting. Hence the celebration since the import of the letter is that there will be no debt discharge income when California homeowners end up doing short sales.

I hate to spoil a nice celebration, but I am going to risk it. The position that the IRS outlined in the ruling is probably good news for most people affected by it. It may not be good news for everybody, though. In order to understand why you have to understand the IRS reasoning. Here is the deal. When debt is secured by property, it is either recourse or non-recourse. Recourse means that even if the property is taken in satisfaction of the debt the creditor can still pursue the debtor. If the debt is non-recourse, the debtor can just hand the creditor the keys and walk away.

[FORBES]

Copy of the Letter Below

Down Load PDF of This Case

© 2010-13 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com


DONATE







Comments

comments

Related posts:

  1. Banks favor short sales over debt forgiveness Palm Beach Post- Florida homeowners have received more than $3...
  2. Short sales not immune to debt collectors DinSFLA here…take note on this “Banks usually have four years...
  3. Contact 13 investigates Bank of America customer’s frustrations with short sales Nothing has changed… “And they’re trying to keep folks from...
  4. Masto has no regrets about robo-signing law’s effect on foreclosures, short sales Banks aren’t foreclosing because their FRAUD was stopped in the...
  5. You may owe federal income taxes in 2013 if you have a short sale, foreclosure I wonder why this hasn’t made any noise, but whatever...

This post was written by:

- who has written 6889 posts on FORECLOSURE FRAUD | by DinSFLA.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

Contact the author

Leave a Reply

GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Chip Parker, www.jaxlawcenter.com
RR Compliance Consulting Inc was established to provide training and support services to the Loss Mitigation Consulting Community.  There is a huge void in the market for this training since those who are truly practicing in the field have neither the time nor interest in providing this training.
Jamie Ranney, www.NantucketLaw.pro
Advertise your business on StopForeclosureFraud.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com

Archives