Short Sales Tax on a 70k deficiency

I recently had a client that had a condo foreclose on him. My client owed about 100k on a 30k unit. Needless to say he was under water on the investment. He didn’t have to worry about an Arizona deficiency judgement because of Anti-deficiency statues but he did have to pay taxes on the deficiency amount. Taxes on 70k is estimated to be between $3-8k dollars.

There is no way to avoid this tax. IRS will find out once the lender sends a 1098 closing statement out at the end of the year. My advice would be to limit your deficiency amount by short selling the home for the highest price possible. You can easily save yourself between 1-3k just in taxes by cleaning the property and making it presentable to buyers instead of letting the property go to foreclosure and sell as an REO for the lowest amount possible.

If you are needing a short sale realtor, please don’t hesitate to call our office. We’ll be more than happy to get you started in the right direction. Broker Executives, Inc. 480-297-2008

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$1,395,000 :: 39727 N 106th Place, Scottsdale AZ, 85262

Property Photo

4 beds, 4 baths
Home size: 4,954 sq ft
Lot Size: 24,000 sq ft
Added: 02/15/10, Last Updated: 05/12/10
Property Type: Single Family – Detached, Residential
MLS Number: 4339788
Tract: DESERT MOUNTAIN
The price of this listing was last reduced on 5/12/2010 by 10%

The private courtyard w/fountain sets the mood for this warm Mediterranean ranch home. Enjoy entertaining family in friends in this open flowing floorplan. Living & dining room w/wood beams, fireplace TV niche, wet bar w/800 bottle wine room. A gourmet kitchen w/center island & prep sink, top of the line appliances, custom alder cabinets with glass & iron accents;opens to the family room. Den office w/wood flooring & built-ins, in-suite guest bedroom, master w/stone fireplace, niches his & hers closets & vanities. Two room guest casita. Magnesium satillo tile with herringbone transition thru out. Outdoors you will find 3 covered patios, fireplace built -in BBQ, pebble tec pool & spa w/water feature. Price includes a Full Deferred Equity Golf Membership to the Desert Mountain Club.

Listed with Desert Mountain Real Estate


Brought to you by Daniel Reynolds, Broker Executives, Inc. Call me today at 480-297-2008!


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$1,395,000 :: 39727 N 106th Place, Scottsdale AZ, 85262

Property Photo

4 beds, 4 baths
Home size: 4,954 sq ft
Lot Size: 24,000 sq ft
Added: 02/15/10, Last Updated: 05/12/10
Property Type: Single Family – Detached, Residential
MLS Number: 4339788
Tract: DESERT MOUNTAIN
The price of this listing was last reduced on 5/12/2010 by 10%

The private courtyard w/fountain sets the mood for this warm Mediterranean ranch home. Enjoy entertaining family in friends in this open flowing floorplan. Living & dining room w/wood beams, fireplace TV niche, wet bar w/800 bottle wine room. A gourmet kitchen w/center island & prep sink, top of the line appliances, custom alder cabinets with glass & iron accents;opens to the family room. Den office w/wood flooring & built-ins, in-suite guest bedroom, master w/stone fireplace, niches his & hers closets & vanities. Two room guest casita. Magnesium satillo tile with herringbone transition thru out. Outdoors you will find 3 covered patios, fireplace built -in BBQ, pebble tec pool & spa w/water feature. Price includes a Full Deferred Equity Golf Membership to the Desert Mountain Club.

Listed with Desert Mountain Real Estate


Brought to you by Daniel Reynolds, Broker Executives, Inc. Call me today at 480-297-2008!


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$1,500,000 :: 29568 N 110th Street, Scottsdale AZ, 85262

Property Photo

4 beds, 5 baths
Home size: 4,890 sq ft
Lot Size: 43,559 sq ft
Added: 03/30/10, Last Updated: 05/11/10
Property Type: Single Family – Detached, Residential
MLS Number: 4364531
Tract: Boulder Crest at Troon North

Highly desired greatroom floorplan with no interior steps * Home is perfect for entertaining with chef’s kitchen including Viking Professional appliances * Panoramic sunset & Pinnacle Peak views with indoor/outdoor living components that include a large covered patio, pool & spa, firepit & BBQ * Master bedroom is split from guest rooms which are full ensuites * Separate office adjacent to master * Oversized 3-car garage with workroom * Furnishings available by separate agreement, but not included*

Listed with Russ Lyon Sotheby’s International Realty


Brought to you by Daniel Reynolds, Broker Executives, Inc. Call me today at 480-297-2008!


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$1,150,000 :: 31648 N Black Cross Road, Scottsdale AZ, 85266

Property Photo

4 beds, 4 baths
Home size: 4,788 sq ft
Lot Size: 213,444 sq ft
Added: 02/04/09, Last Updated: 05/11/10
Property Type: Single Family – Detached, Residential
MLS Number: 4116006
Community: Pinnacle Peak Ranchos
Tract: PINNACLE PEAK RANCHOS
The price of this listing was last reduced on 5/11/2010 by 23%

TRUE ADOBE BLOCK custom Mission-Hacienda style home on almost 3 acres. EXCEPTIONAL construction w/16” adobe, steel frame construction & post tension slab. Inside has cherry cabinets, travertine/cherry wood floors,slab granite, crown moulding, central vacuum, extensive storage, 3 gas fireplaces, french doors to 4 patios, 8′ alder doors, dual pane-low E transom windows w/argon,upgraded lighting & hardware. Kitchen: Dacor dbl oven/warming drawer, Asko dishwasher, Subzero, & Wolff electric cooktop. MASTER SUITE w/therapy tub, snail shower w/glass block,breakfast bar. Extended 4 car garage w/ evap, adjoining dog room w/AC & dog door to fenced sep. dog yard, viewing deck, Pebbled saltwater pool w/boulder water fall,gas firepit,mature fruit trees, copper water feature. INCREDIBLE HACIENDA!!!

Listed with Realty Executives


Brought to you by Daniel Reynolds, Broker Executives, Inc. Call me today at 480-297-2008!


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$1,350,000 :: 6243 E Jenan Drive, Scottsdale AZ, 85254

Property Photo

5 beds, 5 baths
Home size: 4,550 sq ft
Lot Size: 43,559 sq ft
Added: 05/10/10, Last Updated: 05/11/10
Property Type: Single Family – Detached, Residential
MLS Number: 4388664
Community: Equestrian Manor
Tract: Equestrian Manor

Two major renovations in the past few years remodeled all bathrooms and the kitchen; added new guest house with bedroom + walk-in, snail shower/double sinks, game room and office; new MBR his/hers walk-in closets plus huge shower and spa; 3rd garage; prof. landscaping including desert, citrus, palms and mature evergreens, new 10-yr 3M pool surface, roofs 3 years new, all HVAC and water heaters replaced. Whole house water conditioning; entire design is classic Southwest; hard wood, tile and slate floors + all formal and informal areas. Very large rooms; plantation shutters. Located in a cul-de-sac with a back yard featuring a covered, tile patio, oversized pool and built-in outdoor cooking island. Add in the best schools around. 4550 sf includes unsurpassed guest house.

Listed with Stoneybrook Properties, Inc.


Brought to you by Daniel Reynolds, Broker Executives, Inc. Call me today at 480-297-2008!


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