Deadline Is Looming For Certain Mortgage Tax Deductions

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Real Estate Agent with Samson Properties 0225 093857

Deadline Is Looming For Certain Mortgage Tax Deductions

mortgage tax deductionsJust as the housing market is starting to improve certain mortgage forgiveness deductions are set to expire Jan 1, 2013. What that means is that borrowers who negotiates a reduction in principle balance, short sale, loan modification or foreclosure will be taxed on the forgiven amount as ordinary income. Currently the forgiven amount is exempt from federal taxation.

An extension of the Mortgage Foregiveness Relief Act and Debt Cancellation is a possibility but no guarantees being that Congress has some big fiscal issue's to deal with after November. Lobbyiest for the National Association of Realtors are pushing to have the deduction renewed. The Mortgage Foregivness Relief Act has given borrowers a reason to negotiate verses just walking away.

Comments (1)

Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

Fiscal cliff, mortgage cliff. Will it ever end?

Will today matter.

Nov 06, 2012 02:30 AM