Sell your home with ease this year before the market makes a turn for the worst. If you are in Las Vegas and wish to sell your house you can find an excellent real estate agent to help. If you are considering doing a short sale it is advisable to do so quickly because the mortgage debt relief act is scheduled to end as of December 31, 2012.
What does this mean to you? It means a lot if you are trying a short sale because any amount you are “short” , which is the difference between what you owe and the sales price, if reduced will be seen as taxable income to the home seller. If you sell for $200,000 and you have a mortgage of $300,000 you will be seeking forgiveness of $100,000. If you do not complete the sale prior to the end of 2012 this $100, 000 will be added to your tax liability to the IRS. You will receive a 1099 that is recorded with the IRS and they will be expecting an explanation as to how you are going to pay what you owe. If you are in the 15 % tax bracket you might be required to pay up to $15,000. This is not a pretty site when you are already selling your home at a substantial loss but it is the law.
The only way out of this obligation is if you are truly insolvent. This would mean that if you added up all of your assets and show that they do not equal the amount of your debt. This would allow you to justifiably make a claim of insolvency which would allow you to not have to pay the amount owed on the 1099 from the short sale of your home. It is a little complicated but it shows why so many people are pushing to get their short sales closed by the end of 2012. Realtors and lawyers are also pushing hard to get people in as clients because come January 1, 2013 the short sale will not be nearly as attractive to many sellers. Business of the short sale will be much more difficult to come by and it will also likely be much more detrimental to the homeowner.
If you want to sell your house it is a good idea to consider doing it now if you plan on a short sale. If do not want to sell your house as a short sale but are considering a traditional sale you can also sell now and take advantage of the recently increased prices and the low inventory. Las Vegas homes have risen in value substantially since 2011. Get an evaluation today and sell your home.