Lisa Barton

I just read an article posted on FloridaRealtors.org. This is important information if you're waiting to sell your home and the transaction may be a short sale (or worse), a foreclosure. You may owe federal income taxes in 2013 if you have a short sale or foreclosure after 2012. So, now is the time to make the hard decision: Are you going to walk away from your underwater home?

Uncle Sam is still giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences – as long as the lender officially releases the debt. But on Jan. 1, 2013, the rules change: The amount a lender forgives, either in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes. If a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they're in the 25 percent bracket; $7,500 if in the 15 percent tax section.

To read the entire article click this link.