IRS Provisions on Cancellation of Debt on Primary Home extended to 12.31.2013
by, 01-02-2013 at 08:57 AM (7160 Views)
Topic: GOOD NEWS! IRS Provisions on Cancellation of Debt on Primary Home extended to 12.31.2013 i.e. One More Year!
If you experienced a Short Sale, Foreclosure or walked away from your property & get a 1099-C or a 1099-A from the IRS for 2012, make sure you connect with your CPA and ensure proper treatment of the Deemed Income from Forgiven or Cancelled Debt to avoid tax on it.
The Good News about the House & Senate agreeing on the Fiscal Cliff issue earlier today is that the IRS Provisions due to expire on 12.31.2012 has now been EXTENDED BY A YEAR to 12.31.2013.
This is GOOD NEWS for those contemplating scenarios of Short Sale (due to their Primary Home being 'under water' i.e. you owe more on your home than its current assessed property value) or you are in Foreclosure or you have Abandoned i.e. Walked Away from your property, then please be reassured that the IRS Provisions of cancellation of debt and resulting Deemed Income provisions favoring you have been extended until 12.31.2013. Here is a link to read more about it. http://ecreditdaily.com/2013/01/forg...ZjwqA.facebook
If you wish to know more details or consult with me you are welcome to email me firstname.lastname@example.org or call 1.408.759.7049.
It's important that you get proper professional advice from a CPA on such matters.
I hope you find this information useful.
Wishing all readers a Very Happy New Year!
Koshy P.George, CPA
Certified Public Accountant