Tax Penalties for SOME Underwater California Home Owners
Sacramento, CA (PRWEB) May 30, 2014 -- The highly qualified attorney, Ted A. Greene, has taken the liberty of explaining the many benefits that can be enjoyed by homeowners in California who are considering a short sale. He also delves into some of the complexities also associated with a short sale. The recent article published in the Realtor Magazine, “Homeowners Think Twice About Short Sales,” sheds light on the fact that short sales have dropped considerably. (See http://realtormag.realtor.org/daily-news/2014/04/25/home-owners-think-twice-about-short-sales.)
The article highlighted the fact that Congress did not act and there was not yet an extension of the Mortgage Debt Relief Act. The article went on to state that the borrowers would have to pay increased taxes on debt which was forgiven. While this is true for some people there are ways to avoid the tax for most homeowners. According to attorney Greene; “the article and most of the national media don’t explain the exception which is why California homeowners are not sure what to do and should always seek legal advice first.”
This area of law is quite complicated and everyone’s situation is unique and different. Even California legislators and the IRS are confused about all the nuances. For example: California Association of Realtors and Senator Barbara Boxer recently issued a press release claiming to have finally persuaded the IRS and the California Franchise Tax Board to treat California short sales as non-recourse events saving homeowners from having to pay taxes after a short sale. (See http://www.car.org/newsstand/newsreleases/2013releases/ftbclarification.)
That was great news and Attorney Greene had written some blogs and press releases explaining the benefits and why it made perfect sense in interpreting California law in the best light for California homeowners.
Well as one famous historian wrote “the only constant in life is change”. On May 23, 2014 the California Association of Realtors released a letter recently received from the IRS changing its earlier opinion regarding tax treatment in a short sale. The press release and link to the IRS letter will certainly confuse most people as even expert tax preparers are confused. Link http://www.car.org/legal/taxfolder/IRS.pdf
http://upsidedownca.com/blog/2014/05/california-association-realtors
Unfortunately, many realtors do not have the legal knowledge to advice clients on this complicated of an issue. It is very important for home owners seeking assistance with a short sale to seek legal counsel for advice. There are many exceptions and you must get legal and tax advice before proceeding with a short sale.
Ted A. Greene is a California attorney that specializes in issues relating to foreclosure prevention and is a short sale expert. He strives to address and answer questions of concerned homeowners regarding their situation and even provides free legal consultations. Additionally if he handles your short sale from the beginning it costs you nothing. You can have an attorney on your side throughout the short sale process giving you piece of mind. The banks have lawyers on their side and now you can too. Attorney Greene also is actively pursuing litigation on homeowners behalf against the banks when they don’t follow California law.
Media Contact:-
Name: David Najar
Email Id: dnajar(at)tedgreenelaw(dot)com
Phone Number: 916-442-6400
http://www.TedGreeneLaw.com
David Najar, lotag, http://wrongfulforeclosureattorney.net/, +1 (916) 442-6400, [email protected]
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