IRS Tax Tip 2011-44, March 3, 2011

If you are a homeowner whose mortgage debt is partly or entirely forgiven during [...]]]> Have you sold your home as a short sale recently?

If you have you may be entitled to some Tax Relief. Here are 5 of the ten tips from the IRS page.

IRS Tax Tip 2011-44, March 3, 2011

If you are a homeowner whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income.

Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness.
1.  Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2.  The limit is $1 million for a married person filing a separate return.
3.  You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4.  To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5.  Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

For any other Tax Questions, please contact your accountant….

Jeannette Neerpat
Condodomain.com
7727 NW 79th St
Tamarac, Fl, 33321
954-993-4104
Jeannette@Condodomain.com

Crown moldings, tile floors with many upgrades. Don’t let this deal pass you by.  3 Bedrooms 1 Bath