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“Debt Forgiveness Time Clock is Ticking”

The Debt Forgiveness tax exemption is due to expire 12/31/12.

The debt forgiveness tax exemption is due to expire 12/31/12. Can you imagine the amount of folks in this country that would most likely put a stop to the short sales that are in process or will happen in the future?

Right now the loss associated with the sale of the property is considered income, but has been tax exempt for the last five years.

The Congress and Senate will need to extend this law, in order for the real estate sales to continue, so that homeowners can get out of the underwater properties.

If the law is not extended, we will have the beginnings of another real estate downturn, which no one wants.

Clock ticking on forgiven-debt tax break

By: Carolyn Said

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Guido October 14, 2012 at 03:19 PM
Yes, I agree. People need help during difficult times: one-third of mortgaged homes are underwater. So we are talking billions of dollars here. And our President has proposed tax cuts for corporations, when the average taxes corporations pay is merely 13%; while the Repubicans talk about extending the Bush tax cuts once again for the rich, but not to cut military spending. Both parties stole our social security money, our pensions. And both parties will raise the retirement age again: maybe as high as 3 years to 69 years of age. This constitutes taking $65,000 from retirees, making them work until they virtually are in a convalescent home, if they should live that long, having no retirement per se. All this while the rich get richer. And no politician wants to raise taxes on the rich because the rich provide the campaign monies, and politicians want to get re-elected so they put their livelihoods over country and people. The highest marginal tax rate on the wealthy is 35%; it was not below 70% until the 1980s, when our country started running up huge deficits. So why refuse to raise taxes on the super wealthy?

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