Primary Residence Exemption to COD Income Extended Thru 2013 – Great News for Short Sellers!

January 2nd, 2013 by Marc

[The following is NOT legal advice.  For legal advice and counsel, you must consult an attorney or in this instance some other tax professional, and not a blog.]

Primary Residence Exemption May Apply to This Home in 2013Principal Residence Tax Exemption Extended by Law Avoiding Fiscal Cliff

Later today — if he has not done so already — President Obama will sign legislation avoiding the “fiscal cliff” for at least another month or two.  (Insert rolled eyes here — is it really in the nation’s best interests to repeatedly address our financial issues on a temporary and piecemeal basis?)  This legislation includes fantastic news for sellers here in the State of Washington: The principal residence exemption to cancellation of debt income has been extended until the end of 2013 (see Section 202 of the act, link above).