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Tag: CPA

Short Sales And Your Tax Liability

July 15, 2015

One of the most confusing topics when it comes to short sales is tax ramifications. There is so much misinformation and so many myths floating around out there as well as many people that think they know what they’re talking about when they really don’t. First of all, if you’re considering a short sale or a foreclosure one of the things to be aware of is that in both of these situations the lender will issue you a 1099 for their loss and the cancellation of your debt. Within the tax code there are a number of different things that you can read about on your own or ask your CPA about; because I’m a real estate agent and not a CPA I can’t tell you exactly what applies to you but I can make you aware that these things exist.

Number one, there’s an insolvency provision within the tax code that applies to about 85% of the people we help. It isn’t necessarily that you’re flat broke, but that at the time of the cancellation of debt your liabilities outweigh your assets. There is also a provision in the tax code that may or may not be treated as gain on sale depending on whether your home was a primary residence or not. One of the things that we offer to our clients is an attorney in the local area that is incredibly familiar with the tax code and how it relates to short sales. They can help you determine what your tax liability is, if any. Between the two different provisions that I just mentioned, I’d say that 95% of our short sale clients have no tax ramifications what so ever.

One of the things that I really want to get across to you is that when someone makes a blanket statement about owing taxes when your complete a short sale, it’s a really good indication that the person doesn’t really know what they’re talking about. Determining the tax ramifications is actually much more complicated; it’s a question of understanding your financial scenario. If you have more questions about this subject or anything else related to short sales please don’t hesitate to pick up the phone and give us a call.

Interview Your Tucson Realtor Before Starting Your Short Sale File

August 13, 2013

If you are currently in the market to sell your distressed property make sure you find the best Tucson realtor for your needs. While any realtor in the area can handle your file it is best to interview multiple agents in order to find what you are looking for. When searching for a Tucson realtor there are some certain things to look for in order to find an experienced agent for your file.

First of all it is important to know that your Tucson realtor has a history of succesfully closing short sale files. Realtors across the state are able to take weekend classes and training in order to handle short sales but it does not compare to real world experience. Many short sale agents are willing to share their success rate with potential clients in order to show why homeowners continue to trust them with listing their homes. It is also important to ask how many files your Tucson realtor is handling at one time. A short sale requires nearly daily contact with your lender and if an agent is overwhelmed with files yours may not get the attention that it needs. In this situation it is also important to know if your Tucson realtor works alone or has a team of specialists in their office. A short sale is usually a time sensitve transaction and by having a team of specialists in each area of real estate your file can be processed much quicker. This can also be an opportunity for the homeowner to have all of their questions answered by an expert in each field. In fact, some of the more successful Tucson short sale realtors have CPA’s or real estate attorney’s on staff to answer all of your questions.

It is important to find a Tucson realtor that can provide you peace of mind during the sale of your home and asking the right questions is one way of doing just this. If you are ready to sell your distressed property make sure to ask the right questions of any potential agents who will help you avoid foreclosure.

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About Shawn Polston

Shawn has been a Realtor since 2006. Prior to becoming an agent Shawn and his wife were active real estate investors. Shawn takes his education seriously; he’s taken over 200 hours of continuing education classes, to keep up-to-date on current laws and trends. Shawn is a member of the Arizona Association of Realtors Master of Real Estate Society and a Graduate of the Realtor Institute. He is also a HAFA certified Short Sales and Foreclosure Specialist in addition to being a National Association of Realtors Short Sale and Foreclosure Resource.

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