You may owe federal income taxes in 2013 if you have a short sale, foreclosure after this year.

The government is giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences provided your lender officially releases the debt. You must make sure that your lender will do this. Your realtor or attorney can help you with this.

Beginning January 1, 2013 the fules change: The amount a lender forgives, ether in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes.

The deficit from the short sale is taxed and depending on what tax bracket you are in, the amount you would owe can vary.

Homeowners would be on the hook even if the house sold but the bank had not formally forgiven the loan in a letter: The banks must officially sign off in writing before Dec. 31.

When listing your short sale with a realtor, please make sure they are familar with short sales. Many realtors, may have a SFR designation (as I have) which is a Short Sales and Foreclosure Resource Certification which means that we took educational classes on short sales.

We will always keep you posted.

Have a great day and enjoy!

ELSIE KEMPSEY,SFR & JULIE LUDOVICO

Team Tropic Hernando