In 2007 the federal government enacted the Mortgage Debt Relief Act which generally allows taxpayers to exclude income from the discharge of debt on their principal residence, with certain caps and restrictions.
Residents of California have recently been afforded similar benefits. You can get further details at the California Franchise Tax Board’s site:
http://www.ftb.ca.gov/aboutFTB/Newsroom/Mortgage_Debt_Relief_Law.shtml
The tax implications of a Short Sale can be complex. We recommend that those contemplating a Short Sale seek the guidance of a tax specialist and/or a knowledgeable attorney to obtain a complete understanding of how a Short Sale will impact them.
I was on Yahoo and found your blog. Read a few of your other posts. Good work. I am looking forward to reading more from you in the future.
Tom Stanley
It’s very help full for the residence of California, such type of offer really help them to save their money. But as you say’s that the tax implications may be complex so, in that seance they also face trouble to understand it’s impact.
Short sales can be a great opportunity for buyers but so few people really know how they work. Home buyers and sellers both need to get educated.
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