The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable, ... what is the correct answer ....?
please see a link to IRS website for more info, and please see me for information about real estate in Los Angeles Greater area and many it's cities :
see a link to IRS website for more info
Please see me at :
Agency: | Century 21 Ludecke Realty | |
20 E. Foothill Blvd. #105 , Arcadia, CA 91006 | ||
Name: | John Vostenak | |
Phone: | 1-626-445-0123 ex 244 | |
web: | www.johnvostenak.com | |
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