Tax relief law helps troubled homeowners
December 21st, 2007, 10:17 am · Post a Comment · posted by mistywilliams
Legislation signed into law this week will help ease the tax burden on homeowners who have had debt forgiven on their mortgages because of a foreclosure, short sale or deed in lieu of foreclosure.
Up until now, the amount of forgiven debt was considered taxable income — a huge hit to borrowers already in dire financial straights.
The Mortgage Forgiveness Debt Relief Act ensures that any debt forgiven on a mortgage for a principal residence won’t be taxed.
