fbpx

2007 Mortgage Forgiveness Debt Relief Act Extended

Well we averted a catastrophic event with Congress allowing for an extension of the 2007 Mortgage Forgiveness Debt Relief Act to January 1, 2014. Had this law NOT been extended, anyone forgiven debt from the “short sale” of their principal residence, from agreeing to a “deed in lieu of foreclosure,” or having their property foreclosed, would have had to pay federal income tax on the forgiven amount. Thankfully, that isn’t going to happen thanks to some NOT so swift action by Congress.
The New Law reads as follows:
SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.
(a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is amended by striking ‘‘January 1, 2013’’ and
inserting ‘‘January 1, 2014’’.

Mortgage Calculator

The entire ‘‘American Taxpayer Relief Act of 2012’’
Download the entire ‘‘American Taxpayer Relief Act of 2012’’

 

 

 

 

 

First
Last
Sending