Jose in Roseville ask how to avoid Short Sale Tax Consequences.
John Lanting: Hello my friends. My name is John Lanting from Keller Williams and this is my business partner Tomas Garcia, and we’re here to answer all of your questions regarding short sales.
Tomas Garcia: Okay, our next question John is from Jose who lives on the Roseville Area. And his question is, “How to avoid the tax consequences of a real estate short sale?”
John Lanting: Tomas, that is a great question. Another question that’s commonly asked especially in the short sale business. One thing I’d like to point out is that we are real estate agents, we’re not tax professionals, we are not allowed to give any tax advice, but here’s a short answer to that. As of January 1, 2011, a new legislation was passed regarding a property that is considered a primary residence. If it is your primary residence, most likely you will not be paying for tax consequences, but once again, every scenario is different. The best advice I could give is definitely ask your tax professional or a CPA. When a property is an investment property, once again, it’s a different scenario and there could be some tax consequences.
Tomas Garcia: Okay, so what you’re saying John, like you mentioned, it really depends on the circumstances of that specific catering to that situation whether it’s primary, investment, obviously, we didn’t talk about if it’s a vacation home or a second home. So the best advice is speak to a CPA.
John Lanting: Definitely Tomas, that’s the best thing to do.
Tomas Garcia: Wonderful, thank you John.
John Lanting: Well, thank you Tomas.
Tomas Garcia: I appreciate your time and your knowledge.
John Lanting: Thank you for watching the video. If you have any questions, please feel free to contact me at (916) 798-3225. Have a blessed day.