The fiscal cliff legislation is 157 pages long. Section 202 that addresses an issue important to those of us involved in assisting distressed homeowners: income tax on debt forgiven.
At this juncture the legislation awaits the President’s signature, but we are confident that the law that precludes certain income taxes from those homeowners that sell their property “short” has been EXTENDED ONE MORE YEAR until December 31, 2013. In short, most homeowners will not have any tax to pay when they do a short sale.
This could be a sigh of relief as this is really important to those sellers involved in short sales who will experience Debt Forgiveness.
If you have any questions of this law, please feel free to call me.