The good news just keeps continuing…

As they anticipated, the California Association of Realtors (C.A.R.) today received a letter from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.

Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB. Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.

I am pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California. C.A.R. would like to thank Sen. Boxer and BOE member George Runner for their leadership in obtaining this guidance from the IRS and FTB. Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.

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Anyone want to get involved?

Habitat for Humanity involves a group of individuals coming together to build better lives for others. John Heywood’s saying – “Many hands make light work.” – is something that certainly will apply.

This of course can’t all happen without the winning combination of several key organizations and people volunteering, whether it be on or off site. Please contact me at (949)439-6562 if you’d like more information on how you can become involved!

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Prudential California is now Berkshire Hathaway Home Services

Prudential California is now Berkshire Hathaway

As a real estate agent in Orange County, I’m extremely excited about my recent move to Berkshire Hathaway Home Services California.

Anyone looking to buy or sell property in today’s market is looking for someone they can trust. Berkshire Hathaway is an organization that stands behind its agents, and has a strong reputation of integrity and financial stability. I look forward to providing the same detail oriented and professional service as I did before, with a name and organization I’m extremely proud to stand beside. Here’s a link to a recent article about this exciting new change from Prudential California Realty:

http://www.latimes.com/business/realestate/la-fi-lew-20130922,0,907149.story

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