Possible Good News for Owners & Short Sales

In today's market more and more people are forced to short sale their homes.  I just learned from a highly renowned Real Estate Tax Attorney that there is a little known law on the books that allows for the seller of a short sale to write off their deficiency and back track it 5 years.  This means that if you qualify, you could receive a check from the IRS for overpaid back taxes... that's right a check BACK from the IRS.  Just to give you a quick overview of what it takes to qualify, the property must have been an investment property (rental property) and the short sale had to happened before the end of 2009.  Most tax accountants will tell you that you can write off the loss over the next 20 years (standard tax law) but under this little known law, you can actually claim the loss on back taxes for the last five years.  If you paid taxes over the last five years you could collect a check from the IRS for over paying taxes NOW! If you are interested in more information about this I you can contact the office of Kingman Winslow toll free at 866-728-4107 or you can contact Marianne Kingman by email at mkingman@kingmanwinslow.com 

I also have great news for people who are candidates for short selling their primary home.  I can show you how you can write off 100% of your deficiency (difference between what is owed and selling price) so you don't have to pay taxes on that amount either.  You may have been told by someone that you don't have to pay taxes on the deficiency anyway.  Here are the only three exceptions to getting a deficiency relieved: 1. You have not refinanced your home since the time you bought it.  2. If you did refinance the home, ALL of the proceeds (cash out) from the refinance were put back into the home in a remodel or repairs. 3. Your liabilities exceed your assets at the date of sale. In other words you have a negative net worth.  Most people do not qualify but I highly suggest you seek the counsel of someone who knows the laws inside and out.