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H.R. 3648 - Mortgage Forgiveness Debt Relief Act of 2007, The bill gives a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. No taxes would be owed on the value of any debt forgiven or written off. Currently such debt forgiveness is taxable income. This was actually just signed into law by the president last week. "This is going to make a happy holiday for many homeowners," Bush said of the bill moments before signing it into law.
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