Facing Foreclosure or Short Sale? Hang On As Government is Looking To Bail You Out
Try this one on for size.
Speaking before the Rotary Club of Fredericksburg Virginia, Bush said his administration is working to allow more people to afford mortgage refinancing to make it easier to stay in their homes, and said he wants US law changed so forgiven mortgage debt is not treated as a tax expense. via Forbes.com.
Is it possible that those who get foreclosed upon or are facing a short sale will not have to pay taxes on the difference that the mortgage company has to eat? Right now if you have a short sale on your home you have to treat the difference of what you repay your mortgage company and the actual amount due is treated as income.
Now the President is signaling that he wants to eliminate the tax on this. If I was working on a short sale before the first of the year I would do all I could to hold out to 2008 as that may be the cut off for this new tax break.
Original post by Tom
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