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Just Listed debbiesmall.net

Just Listed debbiesmall.net debbiesmall.net@gmail.com Realtor Florida Luxury Realty

Door knocking

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Door Knocking

What does AWC in a home listing meam? Is the house still available?

: I keep seeing some listings online that say “AWC” or Active with Contract. What does this mean? Is it available or not? A: Recently in our Multiple Listing Service there was a pretty major change with the addition of the “Active with Contract” status. Here’s what it means to you. When you are searching for a home either via an MLS feed that your Realtor has set up for you, or on a website like Realtor.com – you may notice some homes say “Active” while others say “Active with Contract” or “Pending”. Here’s the difference: Active (ACT) – Home is actively available on the market and does not currently have a contract on it. This doesn’t mean the Seller hasn’t received any offers yet – they may have – and its up to your Realtor to ask the listing agent. It does however mean the Seller hasn’t yet accepted any offers presented. Hurry and go see a listing that is active before it goes AWC or PNC! Active with Contract (AWC) – This status is often seen on short sales, but occasionally you’ll see it on non-distressed properties as well. The reason “AWC” – or Active with Contract – was created was to allow Realtors to continue marketing homes that were under contract already but have contingencies. Contingencies are things like “bank must approve the sale” or “financing” or “inspections” – things which must be completed or overcome in order for the sale to close. So why does the Realtor want to continue marketing an AWC listing? Two reasons. #1 – sometimes short sale contracts fall through either because the bank counters the offer presented at a higher number, causing the Realtor to have to start all over marketing for a new buyer. #2 – because the Realtor wants to find buyers even though the house is under contract and sell them other Active homes. Many times buyers ask me is it worth looking at AWC listings? The answer is maybe, but keep in mind if the current contract should fall through, the listing will go back to Active, and it will pop back up in your email notifications, and you can look at it then. If you really are in love with an AWC home you’ve seen online, your Realtor can always call the listing agent and inquire as to how strong the listing agent feels the current contract is. If its pretty strong, it may be better not to get your hopes up and move on. Pending (PNC) – This means the home is under contract and they are not currently seeking to continue marketing the home. Most contingencies will be removed once a listing goes “Pending”. Still – if you are in love with a pending house – it may be worthwhile to have your Realtor call the listing agent to see what the status is.

Just Listed!

5552 TULIP DR, NEW PORT RICHEY 34652 MLS#W7604778: http://youtu.be/ECVSuiG8u9Q

should you sell your home or rent it out? What are the tax ramifications?

Some homeowners who can’t sell their home may consider converting it to a rental rather than lowering the price or leaving it vacant. Remember, if a home has been used two out of the last five years as a primary residence, it may qualify for the homeowner’s exclusion of Section 121 of the tax code. This means any gain up to $500,000 for a married couple filing jointly or $250,000 for a single person may be excluded and exempt from tax. Therefore, the property could be rented for up to three years and still fall within the qualifying timeframe. If the property was rented for more than three years, it would no longer qualify for the exclusion. Example: Phil and Miranda are married homeowners who are looking at selling their home. If they sell, they would have a $300,000 long term capital gain. Since Phil and Miranda meet the requirements of the Section 121 exclusion, there is no tax due. However, if instead of immediately selling the house, they rent the home for more than three years and then sell they would lose the exclusion. This would mean a tax liability of $300,000 x 15% or $45,000 upon the sale of the property. If there is not much of a gain to be taxed, converting a primary residence to a rental property may be an appropriate strategy. Again, real estate licensees should encourage their customers to consult with tax experts to make an informed decision.

What is Cancellation of Debt?

Overview of IRS Cancelation of Debt Income, from the Taxpayer Advocate Service What is Cancellation of Debt? If a taxpayer borrows money from a commercial lender and the lender later cancels or forgives the debt, the taxpayer may have to include the cancelled amount as income for tax purposes, depending on the circumstances. When the taxpayer borrowed the money he or she was not required to include the loan proceeds as income because the taxpayer had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount received as loan proceeds is normally reportable as income because the taxpayer no longer has an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to the taxpayer and the IRS on Form 1099-C, Cancellation of Debt. debbiesmall.net

Short Sales, Foreclosures and Income Taxes: a Summary

Short Sales, Foreclosures and Income Taxes: a Summary If a taxpayer owes mortgaged debt to a lender and the lender cancels or forgives that debt in a short sale or foreclosure, in general the cancelled debt is taxable. However, the canceled amount may be excluded from taxation under the Mortgage Forgiveness Debt Relief Act of 2007. In general, this law allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure or short sale, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2,000,000 of forgiven debt is eligible for this exclusion ($1,000,000 if married filing separately).