December 16th, 2012, 3:09 pm posted by Maurine Pool
Randy Johnson, president of Independence Mortgage Co. in Newport Beach, author of “How to Save Thousands of Dollars on Your Home Mortgage” and a mortgage broker since 1983, answers questions…
Q. I had a question regarding short sales and the tax consequences. With the Mortgage Debt Forgiveness Act expiring this year, will sellers in California be facing large tax bills if they complete a short sale on their primary residence in the next year? I want to complete a short sale, but am worried about the timing of the tax break’s expiration.
A. I don’t think that there is any way to predict what Congress will do. Personally, I think that this program has considerable merit and that it should be extended as long as short sales and foreclosures are part of the landscape.
As to your current situation, whatever you do, do it before year-end and then you don’t have to worry. That is a short timetable, so I would talk with your CPA about consequences and actions you nay take.
Presently, I am in the process of refinancing my house loan (to a 30-year loan). I am 74 years old and upon my death, I want my son (age 53), to be > able to take over/assume the loan (easily). The loan officer advised/suggested that I could easily just put my son on the title at this time. However, she suggested that I should check this out with an attorney.
Question: Is this a wise thing to do? How/or will this affect property taxes? When I pass, will the property value be reassessed? Will this affect my Prop. 13?
You really need to discuss this with an attorney because these are all legal issues. They are quite simple, but legal advice needs to come from a lawyer.
That’s it. If you want Johnson to answer a question, email it to Maurine Pool at firstname.lastname@example.org. Include your name or nickname and the city you live in.