California Association of Realtors (CAR) has been fighting to protect underwater homeowners from facing state income tax on debt forgiven in a short sale.
Recently CAR received clarification from the IRS and the Franchise Tax Board that debt forgiven in a short sale is not income. Therefore, CAR will not be pursuing the short sale debt forgiveness provisions in SB 30.
Thanks very much to thousands of REALTORS who fought for their clients by responding to this issue. And yes, we were 2 of them.
A lot has changed on the short sale front. In fact many of the lenders are NOT even requiring that you prove a financial hardship in order to get your short sale approved. For a private and confidential consultation at our office for what steps to take to short sale your home, call or email April Greer at (951) 522-0518 or firstname.lastname@example.org