Posts in Housing Info Statistics
Updated Weekly Real Estate Market Activityfor Minneapolis Saint Paul Twin Cities Metro Area
Housing Affordability is Highand Sales are Picking Up!
We are starting to see multiple offers again, the number of bank owned properties has dwindled and sale prices in many areas are stabilizing. Several areas are experiencing price increases. The Parade of Homes is wrapping up this weekend and our real estate season is off to a good start!
Minneapolis Saint Paul Twin Cities Metro Area Updated Weekly Real Estate Market Activity Report Feb 2012 View more presentations from pattiann
The Federal Mortgage Forgiveness Debt Relief and Debt Cancellation Act was enacted in 2007 to help struggling homeowners by allowing qualified applicants to exclude the discharged debt from their income taxes after a short sale of their primary residence. This law automatically sunsets at the end of this year.Without this law, many homeowners who have been through a short sale will end up paying incomes taxes on the discharged debt. For example, if a homeowner had a $200,000 mortgage and completed a short sale for $125,000 – the lender/services issues a 1099 for $75,000 and the homeowner is then responsible for the incomes taxes on that $75,000.To put this into perspective, there is a long standing Capital Gains Exemption for profits made from the sale of a primary residence. The first $250,000 per individual (or $500,000 per married couple) is automatically exempt from federal income taxes.
It seems horribly unfair to tax homeowners with a real hardship for their loss while at the very same time giving an exemption to homeowners who make a profit on the sale of their primary residence. Talk about kicking someone when there are down!
Why haven’t you heard about this before? Because there are those
The Monthly Skinny - September 2011
Twin Cities Minneapolis / St Paul Metro AreaReal Estate & Housing Statistics and Information.
