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Mortgage Cancellation Tax Relief Act

The Mortgage Cancellation Tax Relief Act - H.R. 1876 was introduced by Congressman Robert Andrews, a Democrat from New Jersey. Currently the bill is being cosponsored by 17 other members of congress, with equal support from both sides. The goal of this legislation is to do away with current laws that require individuals to pay an income tax, when a portion of their mortgage loan is forgiven or when there is a short sale due to a foreclosure.

On April 17, 2007, the bill was referred to the House Committee of Way and Means. I am of the opinion that most people would see this taxation as an unnecessary burden to an otherwise overburden individual or family. If you concur, then let your congressional representative know that you support this legislation.

Posted by William Collins, Broker Associate on 07/29/2007 04:16 AM

Comments (8)

foreclosure, taxation, legislation, congress

Originally posted at: Central New Jersey Real Estate: Mortgage Cancellation Tax Relief Act

8 Comments on Mortgage Cancellation Tax Relief Act

JUL

2007

William, it seems like kicking a person when they're down, to tax someone that lost their home due to foreclosure. I'm glad that someone is addressing the injustice of that.

I wonder if NAR will get behind this? I hope they do as the tax adds insult to injury

William & Jackie,

NAR is a tremendous supporter of this legislation and they are working to help see its ratification. Thanks for stopping by.

JUL

2007

I would love to see them do away with the 1099! So many people are destroyed even more when a predatory we buy home persons says they can save them from foreclosure and then six months later they get a 1099 and don't understand why they owe so much to the IRS.

AUG

2007

After being served papers indicating foreclosure proceedings have begun, one of the options stated by bank was a short sale that would have to be approved. Since the amount owed is more than the current market value, this appeared to be a viable option. After just having learned that I would received a 1099 for "income" would put me and my family in further distress. The motive of short sale should be to prevent foreclosure and bankruptcy and move forward without being further taxed. This is NOT income. I hope there is some priority placed on this legislation as I have learned there are hundreds of families that are daily entering foreclosure due to the subprime loans.

AUG

2007

William, I think this is very important legislation that will help those property owners in need most. I know NAR is a big supporter but I think it is almost important that our representatives hear from us individually. So, everyone start emailing them and telling them about your support for this bill. If you don't know who your rep is then use this link: http://www.govtrack.us/congress/findyourreps.xpd

AUG

2007

Bill - thank you for the helpful information. This is logical and will help many American families.

AUG

2007

Is there any way to expedite the process for consideration of this bill?

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