Underwater homeowners may now have to think twice about staying in their home or not.
The IRS is allowing homeowners until December 31, 2012 to go through a short sale or foreclosure without the impending tax consequences, as long as your lender officially releases your debt.
When the rules change on January 1, 2013, the amount that is forgiven by your lender in either a short sale or foreclosure on a primary residence will be taxable on your federal income taxes.
Contact the BPO Realty Team today for a free market analysis of your home’s value. We work directly with an attorney-based, title company to list and sell your home with no out-of-pocket expenses.