On January 13, 2014, Congressman Bill Foster from Illinois introduced a 2 year extension for the debt relief act that forgives debt exclusion from gross income for the discharge of qualified principal residence indebtedness, and for other purposes. The most common application of the original bill is when a client completes a short sale and is given a 1099 from the sellers lien holder.
The bill is still in committee and the odds of it passing at this time do not look good. The bill contains a provision to pay for the extension by taking away tax breaks from oil companies for domestic production.However not is all lost the IRS does have a insolvency clause that still allows for debt forgiveness if the home owner debts outweigh there assets. This means many buyers still have an option to short sale thier home without fear of a huge tax bill at the end of the year.
If you are worried that you might owe more than your home is worth, Call me at 360.701.3006 or email me at MikeBarber123@gmail.com to find out what your options are or you can Click here, to receive a free, no obligation online home evaluation.
I will give more detail on how HR 3856 and IRS insolvency in future blogs. Olympia, WA - Short Sale Homeowners Debt Relief Extension Act of 2014 (H.R. 3856)
Michael Barber ~ Wes & Company
360.701.3006
The market is changing and you may be at a point where you have some equity in your home... Click here, To receive a free online home evaluation. Again, if you are worried that you might owe more than your home is worth, Call me at 360.701.3006 or email me at MikeBarber123@gmail.com to find out what your options are.
I will give more detail on how HR 3856 and IRS insolvency Olympia, WA - Short Sale Homeowners Debt Relief Extension Act of 2014 (H.R. 3856)
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