In another sign that we’re still not out of the woods, Congress is planning on extending the tax exemption act that’s been in place since 2007. This would make forgiven debt say, through a short sale, tax exempt.
This has been a huge asset to the recovery and the short sale industry. We’ve really appreciated how the government is occasionally able to get its act together long enough to help real people.
The extension expired at the end of 2013. Which leads me to believe that Congress thought we would be out of the woods by then. Turns out – not so much. There’s still a long, bumpy road ahead of us. But with support for the short sale industry which has become the lead method for dealing with the crumbling housing market I believe the way forward should continue to improve.
Do everything you can to encourage government officials and people in the real estate industry to support this tax exemption extension.