jducey1234@aol.com
    845-807-6043

Sullivan County NY Real Estate in the New York CatskillsSullivan County NY Real Estate in the New York Catskills

Sullivan County Real Estate

  • Home
  • Blog
  • About Us
  • Contact
  • Free Home Analysis
  • Search All Listings
    • Search By >>>
      • Address
      • MLS Number
      • Map
      • Basic Search
      • Advanced Search
    • Fixer Uppers
    • Farms and Farmhouses
    • Foreclosures
    • Log Homes
    • Lakefront
    • Vacant Land
    • Newest Listings
  • Our Towns
    • Jeffersonville NY
    • Narrowsburg NY
    • Barryville NY
    • Livingston Manor NY
    • Callicoon NY
    • Bethel NY
    • Roscoe NY
  • For Sellers
    • About Commissions
    • About Listing Agreements
    • Short Sale Info
    • Free Home Evaluation
    • Thinking of Listing?
    • Local Town Officials
  • For Buyers
    • Closing Costs
    • Mortgage Information
    • Area Attractions

Expiring Tax Credits for 2014

Sullivan County Tax infoWill The Senate extend the Mortgage Forgiveness Debt Relief Act?

Currently we have 14 days left in 2014, and as of today,  The US Senate has still not voted on whether this bill, which could cost tax-payers (who clearly do not have the money) millions.

Although short sales are down in 2014, there still were thousands of owners across the country who  after struggling with underwater properties, decided to take the risk and negotiate a short sale and debt cancellation from their lenders. In a short sale, the lender allows a new purchaser to buy a house at a price below the mortgage amount owed by the seller. As part of the deal, the lender typically forgives the unpaid balance.

And the risk they still face is this. If the Senate and House do not pass an extension of the mortgage debt relief law here in the last few weeks of 2014, the full principal balance the lenders had written off on mortgages likely will be treated as ordinary income for 2014. Although the sellers never received a dollar of that “income” , the federal government views it as such, and a fairly large tax bill will greet these already down-trodden home sellers. Unfairness at its height.

For example if $200,000 is owed on the mortgage, but the negotiated short sale price is $150,000. Uncle Sam considers your W-2 to be 50K higher, and they expect taxes to be paid on the difference.

In late summer, it appeared that the bill was moving forward, but in typical partisan stupidity, it bogged down as both parties used it as a weapon to further other, less pressing agendas. As of right now most pundits believe that it will pass at the final hour, but that certainly is not written in stone.

Now if the tax bill is high enough, you can claim insolvency. ( Insolvency is where total debt exceeds total assets.) In that case, the taxes owed would be forgiven.  That is really the only other way to avoid paying the taxes on this phantom income. Even bankruptcy does not necessarily wipe out a federal tax debt.

So as the hours tick down, we will see.

The other tax credit that will not be available to homeowners is the ability to write off private mortgage insurance. (PMI) Since 2007 the government has allowed anyone who did not have the necessary 20% down payment for a conventional loan to write off the mortgage premium they were paying–dollar for dollar. Well that also expired in 2013, and although there has been some talk of extending it, it does not look promising. It really is a shame too. Obviously anyone who has a mortgage with PMI is already paying a higher monthly sum, and is more likely to benefit the most from this sort of tax relief.  But by all means, let’s do away with this tax break, while we continue to subsidize Exxon, and let BOA operate hundreds of tax free locations.

Posted in: My Blog Tagged: Sullivan County NY Real Estate Blog

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post navigation

« Hacked
Monticello Gets The Casino Nod »
Areas We Serve

North County


LIVINGSTON MANOR 12754
Long Eddy 12754
Roscoe 12776
Parksville 12768
Hankins/Freemont 12741
West County
CALLICOON 12723
JEFFERSONVILLE 12748
NARROWSBURG 12764
HORTONVILLE 12765
Kenoza Lake 12750
Mid County


Liberty 12758
Monticello 12701
White Sulpher Springs 12787
Rock Hill 12775
Bethel 12720
The Southwest
Barryville 12719
Eldred 12732
Yulan 12792
Glen Spey 12737
Forestburgh 12777
Lakefronts by Category


LISTINGS OVER 500K
Listings under 500k
MOTORBOAT LAKEFRONT
LAKEFRONT VACANT LAND AND LOTS
LAKEFRONTS WITH PRIVACY
Upper End Lakes
Black Lake, Bethel
Merriewold Lake, Forestburgh
Tennanah Lake, Roscoe
Toronto Reservoir
York Lake, Barryvile
Mid Range Lakes


Lake Devenoge, Highland
Elko Lake, Parksville
Highland Lake, Highland
Lake Joseph, Forestburgh
Lake Loch Ada, Glen Spey
Lake Louis Marie, Rock Hill
Swan Lake, Liberty
Wolf Lake, Wurtsboro
Wannaksink Lake, Rock Hill
Affordable Lakes
Hunter Lake, Parksville
Mohican Lake, Glen Spey
Lake Muskoday, Roscoe
Yankee Lake, Wurtsboro

Property Search

Advanced Search Map Search

About Us

John Ducey
REALTOR® Associate Broker
Direct: 845 807-6043
NY Lic. 30DU1098465

115 Del Vue Road
Callicoon, NY 12723
Office: 607-290-4130
Coldwell Banker
jducey1234@aol.com
Sullivan County Real Estate

I can’t recommend John enough. Selling my home couldn’t have been easier. In a market that was challenging, John found a buyer. I had my home with another broker for over a year!

Janet Yardley

I couldn’t have asked for a better real estate agent. Someone who knew the market inside and out and was not only able to find a great new home at the best possible price, but also was able to market and sell my old home over and above the market value – and in record

Crystal Robinson

My wife and I worked with John to purchase our first country home and really can’t say enough good things about him. He is knowledgeable, approachable, personable, endlessly patient, and incredibly generous with his time (including mornings, evenings, and weekends over the course of 3 years). He answered every question and explained every form and every part of the process clearly and thoroughly. Buying a home in this market is challenging, but working with John made it as painless and straightforward as possible. We highly recommend him.

Consantine Lambris

John is very knowledgeable, dedicated and easy to work with. I highly recommend him.

Melissa Kubenik

We recently purchase a vacation home in upstate NY through John. During the duration of looking for homes and then finally closing, John was amazing. We were not from the area so John was on top of pointing us in the right direction. I firmly believe that without John we would have never found the property that we purchased. I would highly recommend John to anyone! In the next few weeks I will be working with John to sell another property that we own. From the moment you meet John you will see that he is professional, caring, and is on top of his work. I never had to wait more then a few minutes for a return phone call, email, or text message. It was nice working with John who cared more about us and that we were happy, then just making a quick sale.

Kevin Woods

It was a pleasure dealing with John Ducey. We had a home on the market for almost 2 years without any verifiable offers and that became depressing considering we were pulling two mortgages. Met with John who ran some options for us and worked diligently to resolve any issue that would show up. This was greatly appreciated as his work did ease the stress on my health issues. John is easy to talk to and most important, he quickly returns calls and messages.

Both myself and my other half highly recommend Johns real-estate knowledge to anyone.

Bill Nery

John just listed and sold my house in Callicoon. He was patient and very professional through the whole process. Highly recommended for anyone looking to sell.

Jessica Novak

<< Prev
Next >>
© 2021 · Equity Framework
 

Privacy Policy · Listings Sitemap · Log in