In the real estate world, a short sale refers to the sale of a property at a price that is lower than the mortgage value. The process involves the homeowner convincing the mortgage bank to approve the sale so the homeowner can get out of the mortgage. Once the sale is made, the bank either forgives the deficiency (the remaining amount due on the mortgage) or asks the borrower to pay part or all of it. The sale proceeds always go to the bank.
Please note this article is not intended to provide tax advice, it is strictly for informational purposes only. We encourage everyone to consult with a tax professional for all of their tax-related questions. For more information on tax implications and homeownership, visit IRS.gov.
According to Benjamin Franklin, “nothing can be said to be certain, except death and taxes,” and as we are quickly approaching tax season, it’s time to be looking for ways to save on those taxes. Homeowner tax deductions are one of those ways, offering many potential tax write-offs, some that are often overlooked.
With Rhode Island being the 10th highest state in property taxes, with an average of 1.53%, homeowners are looking for ways to reduce these taxes as much as possible. Let’s look at some of the options that are available to Rhode Island property owners.