New U.S. Law signed by the President on January 1, 2013 extends certain provisions of the Mortgage Forgiveness Debt Relief Act through the U.S. American Taxpayer Relief Act of 2012 until December 31, 2013.

This Mortgage Forgiveness debt relief act of 2007 had benefited qualified homeowners who may have otherwise owed taxes on forgiven debt after going through a short sale.

Homeowners will continue to receive their 1099-C forms and should consult with the IRS and their tax adviser and evaluate personal situation and understand their tax payment obligations.

For review of other key provisions of this new law - U.S. American Taxpayer Relief Act of 2012 - click here.

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This is for information only and is not the providing of legal or income tax services. Each person should contact their own income tax professional to determine tax situation responsibility.

Harrison K. Long - real estate and business solutions - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - now serving as an appointed director at California Association of Realtors - attorney member of the California state bar association #69137