Congress Moves to Eliminate 'Phantom Tax'

By
Real Estate Agent with REeBroker CA Lic #01341858

8ballI blogged last week about the possible tax consequences of forclosure.  It now looks like a bill moving through Congress will go a long way to ease the tax burden of borrowers who lose their home to foreclosure. Read all about it here.

For fun, or if you are having trouble falling asleep, you can go read the text of the bill here

In short, this bill provides that any amount forgiven on mortgage debt on a principal residence will not be taxed.

Comments (2)

Courtney Cooper
Cooper | Cartwright - Seattle, WA
206-850-8841
Thank you for posting this - I deal with preforeclosures a lot and this has never made sense to me! Thank goodness for all the people out there!
Oct 05, 2007 01:35 PM
Carol Knighton
Reverse Mortgage Speciaist - Leesburg, FL
Ugh! I just tried reading the actual text! I'm so glad there are folks that can summarize it all!  Thanks!
Oct 05, 2007 01:53 PM