Kalamazoo MI short sales – If you owe more on your mortgage than the house is worth or if you have already had a short sale or foreclsoure you may need to learn more about the Mortgage Act of 2007 act expires.
NOTE: Please do not consider this information to be legal advice or accounting advice. If you have a legal or tax related question, please contact a professional. Our expertise is real estate. We sometimes direct you to other helpful information and today is one of those days. The Veenstra Team is very successful in helping home buyers find the home right for them and in getting homes sold. We also get short sales sold and we do not charge the seller any commission when we work with a short sale seller. Give us a call if you or a friend are having a hard time paying your mortgage, we will provide free help for sellers.
In addition to the information that we provide today, you will also find that additional information about the Mortgage Debt Relif Act is available from IRS.gov.
Here is a a tax tip that we picked up from IRS.gov website
Canceled debt is normally taxable to you, but there are exceptions. One of those exceptions is available to homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012.
Here are 10 facts about Mortgage Debt Forgiveness that we found on the IRS website.
1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit is $1 million for a married person filing a separate return.
3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes — for example, to pay off credit card debt — do not qualify for the exclusion.
7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions — such as insolvency — may be applicable.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box
For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit www.irs.gov. IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments.
You can also use the Interactive Tax Assistant available on the IRS website to determine if your canceled debt is taxable. The ITA takes you through a series of questions and provides you with responses to tax law questions.
Finally, you might get more information by getting copies of IRS publications and forms either by downloading them from www.irs.gov or by calling 800-TAX-FORM ( 800-829-3676 ).
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Remember that all of the web page addresses for the official IRS website, IRS.gov, begin with http://www.irs.gov. Don’t be confused or misled by Internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is http://www.irs.gov/.
Your Kalamazoo Short Sale Specialists
David Veenstra, REALTOR
Jason Veenstra, REALTOR
Call us with your questions about Kalamazoo short sales and West MI short sales at 269-350-5514
We offer free greater Kalamazoo short sale help and can also provide help with Grand Rapids short sales, Holland short sales, Grand Haven short sales, South Haven short sales, Portage short sales. We do not charge sellers any fees for Mi short sales.