Selling short in Portland?
Now is the time to consider the “forgive and forget” your short fall when you sell your Portland home. Or “forgive and pay income taxes”. Every tax rule has a deadline and the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of 2012.
Yikes - Today a short sale takes 4 months on average to close. Current market time is running 120+ days. Let’s do the math and that is about 7 months if we start today.
Delay your Portland Short Sale has Tax Consequences
The delay in starting your short sale process could be substantial. Portland home sellers may or may not be liable for a federal income tax liability as a result of a Short Sale. Keeping in mind that in a Short Sale, you are asking the lender to forgive or cancel, the debt. And anytime debt is forgiven or cancelled this triggers taxable income.
For more information, we would encourage you to visit the IRS’s website at www.IRS.gov.
