Ed's Chesprocott Region Blog: It's Tax Time and For Some Connecticut People Those Documents are Golden

It's Tax Time and For Some Connecticut People Those Documents are Golden

For people that sold a home this past year, having all the necessary documents to avoid paying extra taxes is important. This is part of an email I got from a client this morning:

I'm about to get my taxes done, and I can't track down the closing documents from the sale of my house. Is there any chance you can email them to me? Thanks.

For this client, it is especially important as he closed his property as a Connecticut short sale this past year, and as if was closed under HAFA, he not only received a full waiver of liability, meaning he did not have to pay any additional money to his lender,  but he also has a tax exemption for phantom income due to the extension of the Mortgage Debt Relief Act.  This was passed earlier this year as part of 2016 Appropriations Bill (H.R. 2029).

When a short sale is completed, the difference between the amount owed on the mortgage and the number the bank accepted as payment of the note is called phantom income. This is considered a capital gain by the IRS, and as such would be subject to Federal Income Tax.  This is not the case through 2016.

For a Connecticut home-owner that is underwater with their mortgage there are solutions that may make it easier for them to relieve their mortgage stress.

If you are a Connecticut home owner that is trying to avoid foreclosure, we may be able to help you. A simple call to make an appointment to review the problems and discuss the situation can allow you to be in the position of emailing me for closing documents next year as well.

It's Tax Time and For Some Connecticut People Those Documents are Golden

 

 

 

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Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!

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Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott 

Ed Silva  RE/MAX Professionals,  www.edwardsilva.com  203-206-0754

Comment balloon 8 commentsEd Silva • March 26 2016 08:53AM

Comments

Hello, Ed! This is an interesting post. Thanks for sharing this and I hope you have a pleasant day ahead!

Posted by Nestor & Katerina Gasset, Realtors, Wellington Florida Homes For Sale (International Properties and Investments LLC) over 1 year ago

Hi Ed... each year I automatically snail mail and email out all the closing statements from my sales of the prior year. And it's amazing how many clients from many years past contact me for a copy of their settlement statement. They are always impressed that I can email them one within minutes of their request.

Posted by Nina Hollander, Your Charlotte/Waxhaw/Fort Mill Area Realtor (RE/MAX Executive | Charlotte, NC) over 1 year ago

Ed, it is good to send closing documents to past clients for their tax purposes, especially when they had a short sale.  Great post!  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) over 1 year ago

Ed I am always surprised how many homeowner do not keep the Closing Documents in a place easy to find later.  Had one ask me for the HUD-1 this week.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 1 year ago

Good morning Ed. We get a lot of calls this time of years, from folks asking for a copy of their closing statement.

You shared such an important topic, especially have to do with the Debt Relief Act.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 1 year ago

Ed Silva I tend to send these out snail mail in January.  Good information on the Debt Relief Act.  Anyone looking to sell in central CT, especially underwater, would be wise to contact you.

Posted by Elyse Berman, PA, CRS, Pet-Friendly Realtor, 561-716-7824 (Realty Associates Florida Properties) over 1 year ago

Thank goodness for good accountants that know the tax laws. I am glad Congress extended the Debt Relief Act.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional) about 1 year ago

Ed:

Like you and others I make it a point to send out the closing docs from the tax year of their sale at the beginning of the filing year so they are prepared to file those taxes, or work with their accountant. Yep, they should have all received copies but you know how that goes. It's a simple service we should provide to all clients!

Jeff

Posted by Jeff Dowler, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) about 1 year ago

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