Posts Tagged ‘IRS’
Foreclosure and Your Taxes
Question: We bought our home in a new Gilbert subdivision six years ago. Although there has been some appreciation lately, our home is worth only $260,000. We still owe $380,000 on the mortgage. After my husband lost his job last year, we finally had to stop making payments, and the foreclosure occurred this February.…
Read MoreAdios to Mortgage Forgiveness Tax Relief Act ("Act")
The general IRS rule is that any forgiveness of debt will be taxable. In response to the housing disaster of the mid-2000’s, the Act was passed by Congress in 2007 to give relief to taxpayers who had debt forgiveness as the result of either a foreclosure or a short sale. The Act was subsequently extended…
Read MoreNo Taxes Likely Due on Home-Sale Profit
Question: We bought our first house in west Phoenix for $62,000 cash. The house is now worth $130,000. Our air-conditioning business is doing really well, and we want to move to a nicer neighborhood. My husband’s sister does our tax returns every year, and she says that we will not have to pay any tax…
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