Short Sales are challenging enough without bringing a qualified CPA to the table. Often times, real estate agents in the name of trying to provide good service, step into areas that they should avoid. One of these areas is anything to do with taxes. It is one thing to give a client a copy of the Mortgage Debt Relief Act of 2007, along with specific directions to get to areas of the IRS.gov site that deals with the tax ramifications of Short Sales & Foreclosures. It is quite another to tell the client that under no circumstances will they be liable for the 1009-C that will be submitted by the lender.
I always recommend that my clients seek the counsel of their CPA prior to going through a Short Sale transaction. If they choose not to seek that guidance, that is a choice that they must make and be responsible for any potential tax issues after the fact. There are many issues that can surround a Short Sale transaction depending on the financial status of the seller.
The Mortgage Debt Relief Act, the 1009-C, the form 982, etc…, etc… are pathways set up to help the client get through this challenging time with as minimal financial pain as possible. Understanding the subtleties of the law is for a professional. It is their job to protect you, the seller, throughout this process and empower you to become financially whole again.
Ask yourself this…is it worth the risk? Do you feel confident that you understand the legal aspects of this type of transaction to the point that you are empowered to handle any potential tax challenges?
Being an entrepreneur has given me a deep appreciation for individuals who are success oriented and never give up. The drive to always “push through” is a trait of successful people.
I have been fortunate to associate myself with many successful individuals over my life. It began with my father who instilled in me the ability to step outside of the box…to create something out of nothing. He taught me the importance of integrity in business...traits that I have incorporated into the various business models I employ.
I spent the first ten years of my career in the medical field. I worked side by side with amazing individuals who put their own self-interests aside in order to nurture others back to good health. Many times I witnessed life and death situations. It was always humbling to experience the team-work that evolved around trying to save a lives.
As my career path evolved into the business world, not only could I bring those experiences into my persona, I saw a need to spread information…real information for real situations. A close friend of mine began to mentor me in aspects of blogging. He has given me incredible insight into how a blog should be developed…how to focus my passion for helping mentor people to becoming successful entrepreneurs. This passion for mentoring others began when I was a young child and continues today. It is not about me, but rather those who have influenced my life.
I am a work-out addict and a real “ski dog”. Sorry guys and gals…I do not “ride”. I live for deep powder and steep chutes. I love the feeling of looking over the edge of a steep run…feel my heart beat faster with that adrenaline rush and then “jump in”. I love golf…but I always wonder if I will ever break 100…lol! Most of all, I love my wonderful family…they are the best! Thanks for stopping by and I hope you feel empowered today.
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