Congress has JUST passed tax incentives for individuals extended through 2016 that includes: Sec. 108(a)(1)(E), which excludes from gross income discharge of qualified principal residence indebtedness income.”
In other words, if you are doing a short sale, subject to the regulations of the law, you will not have to pay income tax on the amount of your mortgage that was forgiven. There are many caveats to this rule so contact me for more information about short sales.
