Tax Solutions for Short Sales and Foreclosures
The following real estate transactions may generate a cancellation of debt income that may or may not be taxable to you:
- Foreclosure or abandonment
- Deed in lieu of foreclosure
- Short sale
- Loan modification that results in principle reduction
We specialize in developing strategies and solutions to minimize tax liabilities for individuals and real estate investors in these situations. Our solutions are tailored to the unique needs of each client, minimizing what could be a very adverse outcome. Our firm remains on the cutting edge of ever-changing tax laws.
We help you through this process by:
- Performing an analysis on the potential tax exposure from the short sale or foreclosure;
- Identifying the most beneficial tax provision applicable to your specific circumstance so as to reduce, if not eliminate, your tax liabilities;
- Completing Form 593 that is required as part of your escrow documentation; and
- Preparing your tax return to appropriately reflect the tax strategy.