Homeowners who had debt forgiven in 2014, through a loan modification, loan settlement, short sale, deed in lieu, or credit card cancellation, may qualify under the Mortgage Debt Relief Act OF 2007 for exemption from any federal taxes that might be owed on the forgiven debt.
WHAT ABOUT 2015?
Congress is currently meeting now and expected to further extend the Act as part of a larger tax package in 2015. In the meantime, mortgage debt forgiven in 2015 may count as taxable income. However, if the Act is extended, it will most likely work retroactively, as it did in 2014.
WHAT IS THE MORTGAGE FORGIVENESS DEBT RELIEF ACT?
The Mortgage Forgiveness Debt Relief Act allows taxpayers to exclude discharged debt from income. That is, the debut reduced through either a short sale, a loan modification or other type of debt forgiveness, is exempt from having to pay taxes to the IRS. The forgiveness applies to debt forgiven in calendar years 2007 through 2014. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately.)
WHAT IF I AM IN AN UNDERWATER MORTGAGE?
At the Law Offices of Jacqueline Salcines, P.A., we represent homeowners struggling to pay their mortgages. Whether you have stopped making mortgage payments or are about to, and want to strategically default, we are here to help. We have a great deal of success negotiating settlements for property owners that wish to keep their home or in the alternative, live in the home for as long as possible until a short sale or deed in lieu is negotiated. Both negotiations, once done properly, should result in the lender waiving the deficiency balance and offering the seller a forgiveness of a portion of their loan. On short sales, the seller may even walk away with $10,000 if processed as a HAFA short sale under the Making Home Affordable Program.
If you are a Florida property owner, call and speak to attorney Jacqueline Salcines, Esq. today. As both a real estate/litigation attorney and accountant, she is well versed in handling all matters pertaining to mortgages and balances and has over 15 years experience in the mortgage and real estate field.
No office visit is required and the phone consultation is 100% free of charge. Call and speak to attorney Jacqueline A. Salcines, Esq. Today!
TRUST | COMMITMENT | RESULTS
Jacqueline A. Salcines
JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
CORAL GABLES, FL 33146
TEL. 305 669 5280
EMAIL: J.SALCINES@SALCINESLAW.COM