Current law counts debt forgiven from mortgage disclosure as income which must be reported on one’s tax return. This bill does away with that requirement, so people will no longer be taxed on their forgiven debt.
This is the Mortgage Debt Forgivness Act (H.R.3648). It was signed into law on December 20th, 2007…This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.
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hadn’t seen that
Current law counts debt forgiven from mortgage disclosure as income which must be reported on one’s tax return. This bill does away with that requirement, so people will no longer be taxed on their forgiven debt.
http://www.congress.org/congressorg/issues/bills/?bill=10390451&size=full
hope this helps.
This is the Mortgage Debt Forgivness Act (H.R.3648). It was signed into law on December 20th, 2007…This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.