Short Sales and Federal Taxes

If you’re upside down on your home loan, this year you really need to think about whether it’s time to do a short sale. In 2013 the amount of your mortgage that you are short will be taxable. For example, if you are $100,000 short in paying off your mortgage with the proceeds of the sale of your home and the bank forgives the shortage…in 2012 you will owe $0 in federal taxes on the short amount. In 2013, if you are in the 25% tax bracket, you will owe $25,000 in Federal taxes. That’s a huge difference. Call me for more details at 850-866-3720 or email me at chris@beachybeach.com.