The Bush tax relief rules phase out December 31, 2012  if congress does not make some changes.

How could this effect you?

a) No more forgiveness of Mortgage Indebtedness. If you transfer your principal home for more than you owe on it the amount of debt that was forgiven could become a taxable event. In simple terms you could be taxed for a short sale or foreclosure.

b) Possible increase in Estate and Gift taxes from 35% to 55%

c) Possible increase in individual tax rates and more.

Please contact your tax preparer, CPA and/or attorney regarding this post.