http://johnmurphyreports.com/2007/11/13/short-sales-debt-forgiveness-and-the-irs/ Twin Cities Real Estate Blog: Trends. Insight. Analysis. Thu, 07 Jan 2010 23:17:15 +0000 hourly 1 http://wordpress.com/ http://johnmurphyreports.com/2007/11/13/short-sales-debt-forgiveness-and-the-irs/#comment-31 John Murphy’s MEDINA REAL ESTATE REPORT » Senate Approves Debt Relief Finally! Tue, 01 Jan 2008 17:23:16 +0000 http://medinareport.com/blog14/2007/11/13/short-sales-debt-forgiveness-and-the-irs/#comment-31 [...] According to the story in the Star Tribune this weekend, the U.S. Senate has finally approved the bill that will keep the IRS from taxing home owners who receive debt relief from their banks when they have a short sale. (For more information about short sales, see my earlier post here). For example, let’s say a seller is granted a short sale of $75,000 from his/her mortgage company.  The bank then issues a 1099 stating they have given this seller $75,000 in debt relief.  The IRS gets this information and then considers it income for the seller.  Typically they would be hit with a $15,000 - $20,000 tax bill. [...] [...] According to the story in the Star Tribune this weekend, the U.S. Senate has finally approved the bill that will keep the IRS from taxing home owners who receive debt relief from their banks when they have a short sale. (For more information about short sales, see my earlier post here). For example, let’s say a seller is granted a short sale of $75,000 from his/her mortgage company.  The bank then issues a 1099 stating they have given this seller $75,000 in debt relief.  The IRS gets this information and then considers it income for the seller.  Typically they would be hit with a $15,000 – $20,000 tax bill. [...]

]]> http://johnmurphyreports.com/2007/11/13/short-sales-debt-forgiveness-and-the-irs/#comment-30 John Murphy’s MEDINA REAL ESTATE REPORT » I Buy Houses in Plymouth, Medina, Maple Grove and St. Louis Park Sun, 25 Nov 2007 18:03:27 +0000 http://medinareport.com/blog14/2007/11/13/short-sales-debt-forgiveness-and-the-irs/#comment-30 [...] If you, or if you know of someone, who is in or near pre-foreclosure and they need help unloading their property, I may be able to help.  There are many people who purchased property in the past 2-3 years who are now upside down in their homes.  They may be able sell their home in a short sale and avoid foreclosure.  For more information about short sales see this post from earlier this month. I will consider any property that you may have and I have the ability to close quickly. [...] [...] If you, or if you know of someone, who is in or near pre-foreclosure and they need help unloading their property, I may be able to help.  There are many people who purchased property in the past 2-3 years who are now upside down in their homes.  They may be able sell their home in a short sale and avoid foreclosure.  For more information about short sales see this post from earlier this month. I will consider any property that you may have and I have the ability to close quickly. [...]

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