It looks like the Senate extended the Mortgage Debt Relief Act to cover 2014.
The Mortgage Debt Relief Act allows you to exclude income from the discharge of debt on your current residence. If you completed a short sale during the year 2014 you may be able to save money on your taxes by visiting this website.
Prior to the extension of the Relief Act, homeowners who were released from the deficiency had to pay income tax on the amount. For some homeowners that is a heavy burden and a surprise when taxes are filed and refunds are expected.
If you are considering a short sale and would like more information on the tax implications contact your local tax person or real estate attorney.
Spokane Short Sale Team
