Short Sale, Foreclosure and Strategic Default

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Wednesday, February 13, 2008

Mortgage Debt forgiveness - Loan forgiveness - 1009 c

Mortgage Debt forgiveness - Loan forgiveness - 1009 c: "'The new law contains important provisions for struggling homeowners,' said Acting IRS Commissioner Linda Stiff. 'We urge people with mortgage problems to take full advantage of the valuable tax relief available.'

The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds."

Please remember to consider the California tax rules and capital gains tax rules in your planning