If you’ve recently short sold your property in California, you might be in for a nasty surprise when you process your taxes. The money from your home sale can be tagged as income even in a short sale, and that will only add insult to injury.
The good news is that politicians have heard the will of the people and they understand that no one wants to be kicked when their down. For Californians legislatures recently passed a bill that excludes “forgiven debt” on a principle residence from being considered taxable income — and this includes short sales and foreclosures
If you’ve been hit with the bill, the best thing to do is call your tax professional for guidance.
The views published here are the opinions of the writer and are not a substitute for legal counsel.
Israel Gonzalez
Real Estate Broker-Hollister CA
831-636-8858
Click here to contact me by email
