Foreclosures Used to Carry Big Tax Burden, But Not Anymore

April 23rd, 2008 by admin

In the past, undergoing a foreclosure not only ruined your credit and lost you your home, it also left you with a huge tax burden at the end of the year. Even though you retained nothing from the amount garnered by your property’s sale, the IRS used to count the sale as income, and expect it to become part of your taxable income.

But now that the foreclosure epidemic has reached such big proportions, a new bill has been passed in order to ease the burden on foreclosed homeowners. The Mortgage Forgiveness Debt Relief Act of 2007 makes it much easier for people to avoid the huge tax hit that comes with a foreclosure but critics have argued that since it has been passed, it has not received enough attention, and thus the majority of homeowners still don’t know about it.

Now that foreclosure prevention centers are popping up so readily however, many believe that people will start to learn about and take advantage of the chance for foreclosure debt relief.

Learn about tax foreclosure properties and real estate land for sale.

Start your search for:

• Florida Foreclosure Homes
• Georgia Foreclosure Homes
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Related Posts:

• Obama’s Program Brings Hope to Florida Foreclosures
• Foreclosed Home Auction Effects Pushed Credit Card Reform
• Taxes after Short Sales to Hurt Investors in Tampa, Florida
• California Representative Slips into Foreclosure
• Obama Proposes $300 Billion Tax Cuts to Help Ease Foreclosure

Posted in Foreclosures | 3 Comments »

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1. Find Listings Online - Find Job Listings, Real Estate Listings and Classified Listings. RSS Feed Also Available » Blog Archive » financing for cerdit scores down to 500!….Price - 0.00 Says:
   April 24th, 2008 at 2:15 pm

   [...] Foreclosures Used to Carry Big Tax Burden, But Not Anymore In the past, undergoing a foreclosure not only ruined your credit and lost you your home, it also left you with a huge tax burden at the end of the year. Even though you retained nothing from the amount garnered by your property’s sale, the IRS used to count the sale as income, and expect it to become part of your taxable income. [...]

2. Real Estate Online Homes, Land, Property and Finance Resource Center. Real Estate RSS Feed Available. » Blog Archive » Miami Foreclosed Homes Drop Slightly in March Says:
   April 28th, 2008 at 12:13 am

   [...] Foreclosures Used to Carry Big Tax Burden, But Not Anymore In the past, undergoing a foreclosure not only ruined your credit and lost you your home, it also left you with a huge tax burden at the end of the year. Even though you retained nothing from the amount garnered by your property’s sale, the IRS used to count the sale as income, and expect it to become part of your taxable income. [...]

3. Sell and Tell Online Classifieds - Craigslist, Ebay and Amazon News. Classifieds RSS Feed Available. » Blog Archive » Sell and Tell Online Shopping Network Says:
   April 28th, 2008 at 9:32 am

   [...] Foreclosures Used to Carry Big Tax Burden, But Not Anymore In the past, undergoing a foreclosure not only ruined your credit and lost you your home, it also left you with a huge tax burden at the end of the year. Even though you retained nothing from the amount garnered by your property’s sale, the IRS used to count the sale as income, and expect it to become part of your taxable income. [...]

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