Caveats of mortgage debt forgiveness

REThink Real Estate

Q: I heard from my agent that if you did a short sale in 2009 even if you have pulled cash out during the life of your loan, a law was passed that you will be exempt from the IRS taxing you. Has this law already been passed or in the process of being passed? For what years does this apply? I’m thinking of doing a short sale and need to know the ramifications. Thank you for your help!

A: First things first: I’m not a certified public accountant (CPA). I’m a real estate broker and a lawyer, but generally speaking, I’m not in attorney mode unless I’m sending out bills for $350/hour.

While I believe in do-it-yourself education as much as the next gal, it sounds to me like you’re at the point where you need to talk with a CPA, enrolled agent (EA) or other tax maven with real estate knowledge to get a professional opinion on your personal situation.