A
group of senators are pressing Senate Majority Leader Harry Reid to allow a
vote on a package of tax relief extensions that are set to expire this at the
end of this year, most importantly one involving mortgage principal forgiven in
loan modification or West Sacramento short sale.
If
the Bill is not extended, homeowners who receive a principal reduction or
a West Sacramento short sale next
year may be required to pay taxes on the debt forgiven if Congress does not
extend the Mortgage Debt Relief Act of 2007. The law expires Dec. 31.
Without
giving you tax or legal advice, those who can prove insolvency -- and most
people can, would also avoid paying tax on the cancelled or forgiven debt
regardless of the outcome of this bill.
The
Senate Finance Committee passed the Family and Business Tax Cut Certainty Act,
which would extend the tax relief through 2013, by a 19-5 bipartisan vote earlier
in the month. So c'mon Harry do the right thing for once and schedule the vote
for crying out load.
Congress
is also considering several programs to reduce principal for the roughly 11
million borrowers who owe more on their mortgage than their house is worth.
Those programs would be rendered even less effective if borrowers elect not to
take the relief in order avoid paying taxes on the assistance.
Is
a West Sacramento Short Sale Right
for Me?
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