25 February 2008

Real Estate Tax Changes Help Short Sales, PMI costs !!

Some of the tax changes this year are just in time. With all of the talk about short sales and foreclosures and little experience on how they work, the governments tax code changes are going to benefit a lot of home owners. They will eliminate one of the main drawbacks to working with the bank to sell your home for less than you owe on it. That drawback was called debt forgiveness and simply put, meant that if your home was sold for less than what you owed, you or the bank created a  taxable event and you could owe the IRS taxes on the difference. Thats been changed.

Private Mortgage Insurance is now deductible in most cases and could help explain some of those out of sight house payments. This change should help a large number of Utah home owners if we are to believe the media about the the percentage of houses or condos purchased using a sub prime loan.

Corie or her Shadow from our Salt Lake office wrote a reminder about getting this information to your tax person on her blog yesterday. I found it helpful and wanted to pass it on to you folks. You can read her blog by clicking on Cories Real Estate Blog. Keep in mind, we're Realtors not Tax advisers, we sell homes not tax shelters so this is just a heads up to help you with any Real Estate tax concerns you might have. It's NOT ADVICE.

 If you want to talk to a voice give us a call @ 435-840-5029. To see photos, and descriptions of all the homes for sale in Tooele County click on our website @ Tooele Homes For Sale.  It's free and no registration is required.

Hope this helps, and that these Real Estate Tax changes are of benefit to you and just in time.

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