WRITTEN BY: KRISTA FRANKS BROCK
2/15/2012
Obama’s FY2013 budget proposal includes an extension of the Mortgage Forgiveness Debt Relief Act of 2007.
The Act ensures that homeowners who received principal reductions or other forms of debt forgiveness on their primary residences do not have to pay taxes on the amount forgiven.
Without the Mortgage Forgiveness Debt Relief Act, debt reduced through mortgage modifications or short sales qualifies as income to the borrower and is taxable. Under the act, up to $2 million in debt elimination can be tax-free.
In the Treasury’s Green Book, its summary explanation of the administration’s budget proposal, it calls for an extension of the tax break due to “the continued importance of facilitating home mortgage modifications.”
The administration is proposing an extension that would apply to any amounts forgiven before January 1, 2015.
At that point, the government would reassess the market and determine whether another extension is appropriate.
Visit: http://www.dsnews.com/articles/obama-proposes-extending-tax-waiver-on-mortgage-debt-forgiveness-2012-02-15 for more information
Please visit brdgtohomeownership.com to search for homes in Laurel, Bowie, Upper Marlboro, Fort Washington, Silver Spring, Burtonsville, District of Columbia, etc.
Dates for Buyer Seminar coming in March! Sign up for Qtrly eNewsletter regarding Real Estate. If you know of a teen between the age of 16-21 please check out the Youth Job starting March 1st 2012.
Comments(0)