Hi, I’m Chris Bowers, the owner and team leader of The Bowers Team in Arizona. Thank you for coming to my short sale blog. I just wanted to clear up some things when it comes to short sale, which is what this blog is all about. I wanted to talk about tax ramifications. I have people that come to me all the time wanting to know if they’ll get a 1099 if they do a short sale. The 1099 will reflect the difference between what they owed their lender and what they sold the home for; essentially, the forgiven amount. Yes, you most likely will get a 1099.
First, I want to disclose that I’m not a CPA or real estate attorney, so you need to talk to both and let them know you are going to do a short sale. They can further advise you on the situation and answer any questions that a short sale agent cannot. When it comes to the 1099, if you typically do your taxes yourself or just use some random company, this is the year where you probably don’t want to go that route and instead use an experienced tax professional.
The good thing about doing a short sale right now is the Mortgage Debt Forgiveness Relief Act, which is going to end at the end of the year. We have a lot of people calling us right now, wanting us to list their short sale so they can get the transaction closed by the end of 2012. There is a link at the bottom of this video where you can learn more about the debt relief act before you contact a real estate agent, CPA or real estate attorney.
We’ve been doing short sales for over four years now and we’re very good at doing them; we have over an 80% success rate. We want to make sure that we get you on the right path for you and your family, so please reach out to us at 623.266.1939 or fill out the form on our website so we can start helping you with your short sale today.