Fremont Real Estate Blog

Based on FTB's clarification on how the new California First Time Home buyer credit works, it looks like you can get both the federal 1st time home buyer credit of $8000 and the California 1st time home buyer credit of maximum $10,000 (over 3 years). The federal credit requires that you get into contract by April 30, 2010 and the California credit requires that you close on or after May 1, 2010 and submit your closing HUD-1 within 2 weeks of closing the purchase.

Maybe you can get both the federal and New Califoria home purchase credit. read the blog at WSJ http://blogs.wsj.com/developments/2010/03/24/californias-tax-credit-will-home-buyers-stampede-for-18000/ full bill on new California Tax Credit http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0151-0200/ab_183_bill_20100322_enrolled.html and tomorrow by 5pm FTB is expected to post Q&A on the bill.

First Tuesday sent me this update. If you’re considering a short sale here’s an argument why a foreclosure may be a better answer. California tax surprise for short sales and foreclosures Homeowners who lost homes in foreclosure or sold property in a short-sale in 2009 will incur an unexpected state tax on any...

This was passed to me by Asset Exchange Company , a 1031exchange company. Taxes on Short Sales and Foreclosures According to the IRS, "if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable." The good news is that the Federal government has provided some relief in the form of The Mortgage Forgiveness Debt Relief Act of 2007. The highlights of this Act are as follow: The Act applies only to forgiven or canceled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. The debt must be secured by the home. Exclude up to $2 million of debt forgiven or canceled by a mortgage lender on a primary residence. Both mortgage restructuring and foreclosures qualify Available for the years 2007 through 2012. Claim the tax relief using IRS Form 982 ( download here ) The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 109...

http://chicagotitletransfertax.com/ -sunil SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA / SUNIL SETHI REAL ESTATE My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com My blog: http://fremontrealestate.blogspot.com/ LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766

State Income Tax on Cancellation of Debt in a Short Sale Here's a nice post from CAR legal discussing California's taxation of Cancellation of Debt Income. Posted using ShareThis