2013 California Short Sale Tax Relief Bill Passes State Senate Bill 30
Short sale sellers in California have been in limbo over tax relief since the expiration of the previous tax relief extension which expires at the beginning of this year. Believe it or not, our legislature has been arguing about the matter for the entire time. Part of this argument included an attempt by some to link short sale tax relief for Californians (Senate Bill 30) to the passage of new recording tax (Senate Bill 391). The California Association of Realtors (CAR) has been involved and lobbying heavily for the separation of these two issues. CAR reports that Senate Bill 30 (short sale tax relief) has now passed the state Senate.
Of course, the extension of federal tax relief under the Mortgage Debt Forgiveness Act passed long ago, but California has still been hashing out the issue even though so many Californians need this relief. Hopefully, those who needed short sale relief at the beginning of the year began the short sale process as the proposed tax relief ends January 1, 2014, and that leaves only a narrow window to complete a short sale without being in the same position of uncertainty waiting on possible 2014 short sale tax relief. The extension of some of these benefits (HAFA, Mortgage Debt Forgiveness Act) for short sale sellers may come to an end soon, so those on the fence may want to seriously consider their options at this time. Many potential short sale sellers have been able to avoid short sales due to the recent uptick in prices. Others are still deeply underwater and stuck.
Before deciding whether a short sale of your home is right for you, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering the short sale of your Central Coast home and would like a complimentary short sale consultation, please call my office to schedule an in person meeting or a telephone consultation at (805) 878-9879.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing, HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing, CAL HFA, Fannie Mae, Freddie Mac, and others.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Tni LeBlanc and MInt properties are not affiliated or endorsed by any lender, investor, guarantor or mortgage insurer.
Copyright ©2013 Tni LeBlanc *2013 California Short Sale Tax Relief Bill Passes State Senate Bill 30*
