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September 2008 » Tax Consequences of Home Sales...
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Mark A. Segal, LLM, CPA, and Bruce M. Bird, JD, MST, CPA, and Barbara Leonard, PhD, CMA
In many areas of the United States, home prices have fallen during the past year. The number of housing units for sale has increased. So, too, has the average length of time before a housing unit is sold. Late payments on mortgages are on the rise. During the last decade many homeowners took out second mortgages and home equity lines of credit on their homes, which are now causing financial strain on homeowners in a declining market. The most troubling result of these factors is the recent surge in foreclosures reverberating through the housing market.
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