AboutHeather Expertise I can offer information about pre-foreclosures, foreclosures, short sales and high rise projects in the Las Vegas area. I can also assist with financing questions, especially involving investors.
Experience I have been in the real estate industry since 1990, and 4 years in Las Vegas. I am also a licensed loan agent in Nevada.
Education/Credentials BA in Liberal Studies from CSU Northridge
Licensed Realtor
Question Hello Heather - I saw from a previous answer regarding short sale & foreclosure that the lender "can report that amount to the IRS as a capital gain". I a unclear - do they issue report to the IRS for capital gain, or as miscellaneous income, which is taxed at marginal rates?
Answer Hi Michael - I'm not a tax professional, so this is something that should be discussed with whoever does your taxes.
Basically the way it works is, for example, you owe $200,000 and sell for $150,000, you are short $50,000. The difference between what you owe and what you sell for (after the bank okays the deal) can be considered ordinary income, for which you may receive a 1099. However, early this year, President Bush enacted into law a forgiveness for homeowners who were owner occupants. That meant that the bank usually isn't pursuing the homeowner for the deficiency (the $50,000) and the IRS isn't taxing you on it through 2009. Please note, this is not true for investors, only owner occupants.
Again, check with whoever does your taxes or a professional financial advisor to see how it may apply to you.
Heather Peck
Rosen & Company West
702-595-7380
LasVegasExpert@yahoo.com
