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The National Association of Realtors is pleading to Congress to do the right thing when it comes to extending tax relief in Foreclosure Forgiveness echoing the words of Attorney General Eric Holder. The clock is ticking towards the end of 2014’s fiscal year which means homeowners who short sold or foreclosed in 2014 will have to pay the IRS in 2015 on any “forgiven debt” as it now considered income.
The shield from taxation became effective January 1 2014. The Attorney General and the NAR is pleading to Congress to “Do the right thing” for financially distressed homeowners and extend the taxation shield. With Foreclosures still rising even with positive shifts in the economy, 2015 may prove to the be extremely burdening for American Homeowners who now find themselves owing exorbitant sums of taxes in 2015 on their forgiven debt from their foreclosure or short sale.
The plea to Congress has hopes of being heard as the strength of voices are rising on behalf of homeowners. The concerns have steamed from a $17 billion dollar settlement between Bank of America and the of Department Justice. The Bank agreed to provide $7 billion of that sum to distressed homeowners who are “underwater” by lowering mortgages. It sounds like a huge help, until 2015 comes with your tax bill.
The greater effects of foreclosure debt forgiveness could spur another financial crisis and deepen the current foreclosure issues. Basically, it may cost America more than $7 billion of relief. In 2015, American homeowners will be hit with hard to pay back tax bills though help from the IRS could come – but all things with a price.
Foreclosures and short sales are some of the most difficult areas to navigate for homeowners but there is an advocate who can help you navigate those waters. Foreclosure Attorneys are able to help and sometimes lesson penalties, negotiate in ways you didn’t know were possible and they know the ever changing laws and how to use them to their advantage. There’s always a light at the end of a tunnel and for those in the midst of the foreclosure process, that light comes in the form of a Foreclosure Attorney in West Palm Beach.