by Kay, Georgia Loan Officer & VA Specialist
Congress recently passed a law offering tax breaks to people:
- who have had mortgage debt forgiveness (short sales and refinances),
- are full-time students and single parents, or
- pay private mortgage insurance (PMI).
Congress recently passed HR 3648, Mortgage Forgiveness Debt Relief Act of 2007.
The new law provides the following tax breaks.
Mortgage Debt Forgiveness (such as Short Sales)
In the past, people who have had part of their mortgage debt forgiven usually had to pay some taxes. For example, if a person owes $150,000 on a mortgage, and the lender allows them to sell the property for $100,000 to avoid foreclosure, the lender would usually send the seller a 1099 for $50,000. The property seller would have to pay income taxes on $50,000. Under HR 3648, the property seller may not have to pay income taxes on these discharged debts for qualified primary residences.
Single-parent full-time students
Allows some full-time students who are single parents and their children to live in housing units eligible for low-income housing tax credit. This applies as long as their children are not dependents of anyone else (other than a parent).
Extends PMI Tax Deductions
In the February 2007 email newsletter, I explained the provisions of the Tax Relief and Health Care Act of 2006, which made some PMI payments tax deductible. The tax deductions were originally intended to expire December 31, 2007. HR 3648 extends the tax deduction for mortgage insurance premiums through 2010.
For additional information about the tax breaks, please
click here or visit http://snipurl.com/hr3648.
Please note: this is not intended as tax or legal advice. Please consult your tax accountant before making any tax-related decisions.
If you have any questions about obtaining a mortgage, call (404-298-5500 ) or email me anointedmi@aol.com
Posted by Kay at Anointed Mortgage, Inc. Since 1998, it has been our pleasure to help residents of Lithonia, Dekalb County, and all of Georgia with their mortgage financing needs. Our team has
over 25 years banking and finance experience. Our specialties are
VA Loans and mortgages for people relocating to Georgia. Check today's interest rates or learn more about mortgage financing by visiting
AnointedMortgage.com or calling 404.298.5500.
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