Tax Benefits For 2014 Short Sale Sellers

LAS VEGAS - Jan. 8, 2015 - PRLog -- The average amount of tax savings on a short sale which closed in 2014 (according to NAR Research) should average $5,400, thanks to the extension of the mortgage debt forgiveness provision last year.  Getting it extended for future years is high on NAR's legislative agenda for 2015.

On Dec. 3, 2014, the House of Representatives passed H.R. 5771, the Tax Increase Prevention Act of 2014, by a strong bipartisan vote of 378-46.  Additionally, on December 16, 2014, the Senate passed an extension of the Mortgage Debt Forgiveness Act by a vote of 76-16. The extension applies to any short sale conducted in 2014.

The bill includes a one-year extension of several expired tax provisions that benefit REALTORS and their clients, including tax relief for mortgage debt forgiveness.  The relief is effective retroactive to Jan. 1, 2014, but expires again on Dec. 31, 2014.  Also included in the bill are one-year extensions of the 15-year depreciation schedule for leasehold improvements, the deduction of mortgage insurance premiums, and the deduction for energy efficient commercial buildings.

If Washington had failed to act on the renewal of the tax breaks, any mortgage forgiveness achieved in a short sale would have been counted as income for homeowners whom banks allowed to sell their homes for less than the amount of their mortgage. Homeowners who had short sales in 2014 are now one giant step closer to receiving tax relief on any money they received as the result of the sale of their home.

The extension only applies to short sales conducted in 2014. Any further extension of the short sale tax break will have to be taken up by the newly elected members of Congress when the Congress begins its 2015 session in January.

For additional information regarding the benefits of doing a short sale on your home, please click the following link:

http://www.nevadashortsaleinfo.com/-----home.asp

http://lasvegaslist4less.com/home.asp

The Myers Team with Simply Vegas Real Estate is nationally recognized as Nevada’s Top Real Estate Agents.  Additionally, from January 1, 2007 to December 31, 2012, The Myers Team successfully sold more short sale listings than any non-lawyer affiliated Realtor or Broker in the state of Nevada.  The Myers Team is a licensed Real Estate Team and not qualified to offer tax or legal advice.  For tax advice, please consult with a qualified tax professional.