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Stephen Queen 
Professional Realtor 
Cell: 202-367-4348 
Fax: 301-576-4599 

Email: squeenofexit@aol.com 

Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

Steve Queen's Top 2 Most Commented Short Sale Blogs in August!

             Important Tax Ramifications for Short Sale Transactions!

In a short sale transaction, a seller finds a buyer offering to purchase a property for a sum that is less than the outstanding mortgage debt. If a lender agrees to a short sale, the debt may be reduced or eliminated. The Internal Revenue Service (IRS) considers any canceled debt ordinary income to the seller. This income may be subject to taxation. In some instances, tax relief is available.
Tax Exemptions
1. Certain debts qualify for tax exemption. If the debtor files for bankruptcy or can prove that her abilities exceed her assets, there are no federal taxes on the short sale income. If the debtor holds a non-recourse loan, the lender cannot collect assets from the debtor that were not pledged to secure the loan. In this instance, the income secured through the short sale may be subject to taxation but not the canceled short fall of the original mortgage debt.
Debt Forgiveness
2. The Mortgage Debt Relief Act of 2007 allows for tax relief on income gained from a property sold in ashort sale in connection with a foreclosure. The property must be the seller's principal residence and the balance of the loan was $2 million or less. The limit is $1 million for a married person filing a separate return. This provision is also applicable if the loan went toward buying, building or substantially improving the seller's principal residence, and secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing. In October 2008, an extension of this legislation provided tax relief for forgiven debt, applicable from 2007 through 2012.
Exceptions
3. Debt forgiven on second homes, rental property or business property, does not qualify for tax relief under the Mortgage Debt Relief Act. If a debt is not otherwise exempt for tax, the forgiven income may be taxed as ordinary income at a rate between 15 and 30 percent.
Report to the IRS
4. When a short sale transaction is complete, the lender will provide Form 1099-C to the seller reporting the amount of the debt canceled, and the appraised value of the property. The IRS strongly recommends that borrowers check the Form 1099-C carefully. Notify the lender immediately if any information shown is incorrect. It is the seller's responsibility to report the forgiven debt to the IRS. Attach Form 982 to your tax return stating the amount of debt forgiven by completing Line 1e and Line 2. Otherwise, the IRS will consider the forgiven debt as ordinary income and penalize the seller for unpaid taxes.
Additional Tax Liability
5. The Mortgage Forgiveness Debt Relief Act applies only to tax owed to the federal government. It is always helpful to seek professional tax advice regarding the possible tax implications of selling a home. Some additional taxes, such as real estate excise tax, may be due in the state where you live.
Because buying or selling a home is a big decision, Steve Queen with Exit Bennett Realty is your Real Estate Expert in Bowie, Upper Marlboro, Greenbelt, Lanham, Laurel, Glenn Dale, Crofton, Glen Burnie, Clinton, Hyattsville and all other cities in Maryland and the District Of Columbia. You will have step by step guidance to access resources to make the transaction smooth. Call me today at (202) 367-4348. You are my #1 priority. Please give me the opportunity to prove it.

View foreclosures, homes for rent or purchase as well as obtain valuable information on the home buying and selling process at www.stevequeen.com. I specialize in Short Sales
 
 
 
 
 
 
 
 
 
               Eight Tips on Selling Your Home In This Market!
 

Whether you're in a bone-dry market or a sizzling selling season, if you haven't received any offers on your home you're probably facing the question of whether to take it off the market. A house that goes too long without selling begins to appear "stale" and can actually damage your future chances of a sale.

How long is too long? It's not an exact science, but there are some helpful indicators. In a dry market, a sales period of six months to one year isn't unusual. Look at recent sales reports of similar homes nearby to determine a reasonable selling interval. In a hot seller's market, a house that hasn't sold within one month indicates a problem. In either case, there are several steps you can take before putting up the white flag.

10 tips to improve your selling karma
1. Videotape your house, inside and out, and watch the tape as if you were a prospective buyer. Is the lawn weedy or the garden bare? Is your home uncluttered and spotlessly scrubbed? Sparkling-clean houses sell faster than those that look too lived-in or show an abundance of the owner's personality.

2. Take a second look at your listing price. Visit open houses in your neighborhood. Are similar homes priced lower? Selling prices may have dropped since your first comparative market analysis. (See recent home sales in your area here.) In a hot market, if you haven't sold your home within one month, chances are good that you've overpriced it. If you do lower your asking price, consider a figure slightly below those of other comparable homes if you are interested in a speedy sale.

3. Do whatever it takes buyer agentsto be away from your home during showings and open houses. The presence of sellers makes it difficult for prospective buyers to take their time or talk openly with their partner and agent. Leave some treats out to make potential buyers more comfortable: beverages, nuts, cookies -- anything that won't lose freshness or be too messy.

4. Ask your listing agent to talk to in his or her firm who have shown your home. The feedback from their clients can guide you in making home repairs, toning down your décor, making landscaping improvements and the like.

5. Hold an open house on a weeknight. Competition is lower, and you'll attract the interest of buyers who can't make weekend appointments because of other commitments.

6. Neutralize your color scheme. Most buyers prefer pale, neutral colors that make it easier to imagine a new home as their own. Houses with white exteriors are the highest sellers; for interiors, try whites, off-whites or pale gray.

7. If you've had offers but you considered them too "lowball," try readjusting your sights. Determine the lowest price you find acceptable, and consider anything more as icing on the cake. In a longstanding dry market you may even have to sell at a loss, so it's important to take every offer seriously. You don't want to alienate a potential buyer who has solid financing because you've set your sights unrealistically high.

8. Is your listing agent giving your house adequate attention? If not, start by having a candid talk. If there's no change, discuss the problem with the firm's broker. As a last resort, wait until your listing agreement expires and find an agent with a proven track record in your area. On the other hand, if you have a fabulous agent but the market is underwater, consider offering an increased commission or a bonus for your listing agent as extra incentive. If you do sweeten the pot for your agent, amend your listing contract to reflect the change, and be sure it's added to the Multiple Listing Service (MLS) book -- buyer agents will also be inspired to give your house extra attention.

 

 
Because buying or selling a home is a big decision, Steve Queen with Exit Bennett Realty is your Real Estate Expert in Bowie, Upper Marlboro, Greenbelt, Lanham, Laurel, Glenn Dale, Crofton, Glen Burnie, Clinton, Hyattsville and all other cities in Maryland and the District Of Columbia. You will have step by step guidance to access resources to make the transaction smooth. Call me today at (202) 367-4348. You are my #1 priority. Please give me the opportunity to prove it.

 

View foreclosures, homes for rent or purchase as well as obtain valuable information on the home buying and selling process at www.stevequeen.com. I specialize in Short Sales.

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