I'm being taxed on my Short Sale?

Hi Neighbors,

Just a reminder that you should always check with a tax consultant when doing a short sale to validate the tax implications of your transaction. A recent article in the SF Chronicle (read article here). The article states "Californians who lose their homes in a foreclosure, short-sale or deed in lieu of foreclosure this year could be hit with a state income tax on canceled or forgiven debt." Federal law excepts taxing the forgiven debt through 2012. State rules are more complex, so check with your tax professional.

Two state tax bills are in the Assembly to expand the tax relief.

Have a great weekend,

Jeff