AZ Property Solutions team explains tax implications of a short sale
Are there tax implications of an Arizona Short Sale? The AZ Property Solutions team will assist with finding a property solution that will work for most sellers, but first you must understand the tax implications of an Arizona Short Sale. Many questions regarding tax implications of an Arizona short sale and the tax consequence involves The Mortgage Forgiveness Debt Relief Act of 2007. The AZ Property Solutions team recommends you read The Mortgage Debt Relief Act of 2007 is applicable for all homeowners that need debt forgiven during the calendar years of 2007-2012. Nextage Realty property solutions team will want you to be very careful when evaluating your situation. There are several times where forgiven debt isn’t taxable. The most common circumstances where forgiven debt is not taxable involve:
Tax implications of any Arizona short sale must be confirmed with a CPA or an experienced tax advisor. Some of the services that the AZ Property Solutions team can help with the negotiation with your bank at no charge, as well as all the sales process.
Our services are paid for by your bank through closing costs, only if we are successful in negotiating with your bank. Nextage Realty provides solutions that we believe are in your best interest and represent you and your needs. Because we are not licensed attorney’s it is also recommended that you consult a knowledgeable real estate attorney especially when the property you are short selling is a rental home. There are variations to the tax implications of an Arizona Short Sale depending on the type of the loan (Purchase money loan, HELOC, or Private money); recourse vs. non-recourse, the tax consequence may change. AZ Property Solutions has helped coordinate and work through many of these questions with homeowners that are exploring their options. All agents at Nextage find property solutions that work best for you.
So now you understand the tax consequences of a short sale – what are the benefits of doing a short sale?