Counties covered: Duval, Clay, St. Johns, Nassau, Flagler, Putnam.
Cities Covered: Jacksonville, Ponte Vedra, Ponte Vedra Beach, Orange Park, St. Augustine, St. Augustine Beach, Vilano Beach, Palm Coast, Flagler Beach, Palatka, Hastings, Elkton Florida
In the not-so-distant past, a short sale meant the lender forgave part of the home seller's debt, but the home seller - many times to his or her surprise - had to pay federal taxes on the forgiven amount because the IRS treated it like income. Under new tax rules, however, the lender sends a 1099-C, Cancellation of Debt, to the home seller in most cases. The forgiven debt does not have to be included in taxable income, and it gets reported instead on Form 982. To be eligible for debt cancellation, the mortgage must have been a primary one on a principal residence; the cancellation occurred between 2007 and 2012; and the mortgage's principal balance must be less than $2 million ($1 million if filing separately). As with any tax matter, home sellers should keep all paperwork to back up their claim in case it's questioned. It's also a good idea to consult a tax attorney on any tax issue. For more information, go to www.irs.gov.
SELLERS: You may qualify for MY FREE REAL ESTATE SERVICES if your loan amount more then your home is worth.
For more information about short sale your home please contact Pavel direct at (904)859-5002