Mortgage Debt Relief Act of 2007 is Coming to a Close, Taxes Loom
Are you ready to be taxed on your debt relief? Did you know that the debt relief could bump you into the highest tax bracket beginning 1/1/13?
A lot of people who are currently in trouble have no idea that this is coming down the line. Everyone is talking about how individuals who walk away from their home debts in either a short sales or a foreclosure will not have to pay tax on the debt – but is that really true?
What most people don’t know is that after 12/31/12 they will be held responsible for paying tax on the debts that they have walked away from (unless they fall into some special categories!).
Are you ready to pickup your negative debts (in many cases for homes upwards of $300,000+) of income on your tax return?
If you are concerned if the end of the debt relief act may changed your tax return, please contact us right away so that we can get to creating a plan for you!
Always looking out for your best interest –
Shauna, The Tax Goddess