Idaho

Short Sale Mortgage Debt Forgiveness

03-06-12

Keith Vermilyea - CDPE Your Boise Real Estate Agent

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Office: (208) 571-9164

DEBT FORGIVENESS GUIDELINES

Short Sale Tax Consequences

Thousands of Boise homeowners have experienced a short sale of their primary home over the past several years, but many may not know about the tax consequences of a short sale. Tax consequences are one of the first questions that I am asked as a Boise Certified Distressed Property Expert when counseling clients about their foreclosure options. All homeowners should consider the following information from the IRS about short sale debt forgiveness when considering whether a short sales is the best option for them to avoid foreclosure.

When a lender writes off any part of a mortgage balance (debt forgiveness), the portion of the balance that was forgiven becomes taxable income to the borrower under IRS guidelines.

In 2007, congress passed the Mortgage Forgiveness Debt Relief Act (MFDRA) in response to the burgeoning mortgage default crisis. Under the MFDRA, borrowers may be allowed to exclude up to $2 million of mortgage debt on a principal residence from 2007 through 2012; however there is a $1 million dollar limit for a married person when filing a separate tax return. The MFDRA also includes debt reduced through a mortgage restructuring program.

The MFDRA also includes mortgages for home improvement projects as long as the improvements “substantially improve” the borrowers principle residence. Homeowners should contact a qualified CPA for details regarding what constitutes as a “substantial improvement”. Any secondary mortgage(s) taken out for other purposes not related to home improvement would not qualify for debt forgiveness with the possible exception of certain bankruptcy considerations.

During the short sale process, homeowners will need to pay special attention to the short sale approval letter issued by their lender(s). The approval letter will often outline issues regarding debt forgiveness and may reference IRS Form 1099-C which is an indication a portion of the mortgage debt may be forgiven. A lender will send Form 1099-C after a short sale is approved and they must include certain information on the form such as the amount of debt forgiven and the fair market value of property if foreclosed. Be sure to review the 1099-C upon receipt of it for accuracy.

All Boise homeowners who have successfully sold their home by short sale must complete Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness when filing their federal income tax return for the year mortgage debt was forgiven.

All Boise homeowners that have gone through a short sale or are considering a short sale to avoid foreclosure should contact a qualified CPA for expert financial counseling. In addition, the IRS provides online tools to assist as well. The Interactive Tax Assistant is a user friendly tool that can be found at irs.gov as well as Publication 4681: Canceled Debts, Foreclosures, Repossessions and Abandonments.

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Body by Scotty in Post Falls Idaho

03-06-12

Patsy Barten REALTOR Post Falls ID

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Office: (208) 818-6622

Body By Scotty in Post Falls Idaho, an auto body shop, is a great example of small business doing great after many years of working very hard. They truly started in their backyard in 1990, moving to their current location in Post Falls in 1995 where in the next few years they added more shop space and new office space. They currently have 17 employees and have been faithful members of the Post Falls Chamber for many years. I have personally experienced the fine work they do.

Sharon and Scotty have always been active community members and each summer, on the last Friday in July, they host a huge block party to say “thank you". Their philosophy is to provide a fun, safe, and friendly experience for everyone. They truly believe that by giving back to the community in this way, they can show their appreciation to all those who have helped make them successful.

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Investing in Bank Owned Foreclosure

03-06-12

Kevin Simpson

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Office: (718) 732-2676

To find great savings on a new home or investment property, just come to BankOwnedProperties.org and browse our deals on Boise bank owned foreclosure! There are all kinds of chances to save up to 50% on Boise bank owned foreclosure, and we can teach you how to buy effectively. Come see us and learn more about how to buy great Boise bank owned foreclosure for discounted prices!

Wonderful Foreclosure Boise City Home! Act on this one today!

$98,800

For Additional Photo's CLICK HERE!

Bedrooms: 2
Baths: 2
Square Feet: 1,505
Lot Size: 1,505
Style: Single Family

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Bank owned foreclosure in Idaho Falls: Finding the right property

03-05-12

Kevin Simpson

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Office: (718) 732-2676

Finding the right property can be a real challenge when you are searching for a bank owned foreclosed property in Idaho Falls. The first criterion that an investor or primary home buyer would look for in a property is the location. If the property is in a good location and impeccable condition it can fetch you a higher resale price when you plan to sell the property. BankOwnedProperties.org has a large database of bank owned foreclosure properties in Idaho Falls. Based upon your search parameters all details of foreclosed property are listed. You assure you the best property that suits your requirement at BankOwnedProperties.org.