mortgage debt: Still Underwater? - 09/16/14 12:39 AM
Is tax relief in sight for those who find their mortgages still underwater? Could be. In light of the recent settlement between Bank of America and the U.S. Justice Department, which could bring principle reductions to homeowners currently living underwater. The question is: What will the tax implications if principle reductions happen?
Under current law any reductions are considered to be regular income to the homeowner and, thus, will be taxed as such. Depending on the size of the reduction the potential tax bill could be large.
It should be noted that the Obama Administration allowed Mortgage Forgiveness Debt Relief Act of 2007 … (5 comments)

 
Doug Dawes, Your Personal Realtor® (Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA)

Doug Dawes

Your Personal Realtor®

Topsfield, MA

More about me…

Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA

Address: 11 South Main Street, Topsfield, MA, 01983

Mobile: 978-270-3037

Office: 978-887-3995

There is more to life than Real Estate. My intention is to provide not only Real Estate information but items that we all face and experience in our daily journey through life.


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