Coconut Grove Sellers: Another Warning About Short Sales
June 28th, 2008 | categories: Selling Real Estate in Coconut Grove
Short sales are extremely difficult real estate transactions….the bank is very slow to respond to inquiries, you can wait months and months for the deal to close, the buyers are asked to sign questionable documents, the list goes on and on.
But there is one more thing to worry about……….the tax implications of your short sale.
Did you know that if your home is a short sale, the IRS will ask you to pay taxes on the amount of money that you were “forgiven”? The IRS counts that as income and you are required to pay taxes on it!
My fellow EWM Associate Maggie Dokic over at “The Blog That Ate Miami” wrote an excellent post regarding this topic. Read more here.