Part of this month's agenda of Congress (before they disappear for their paid Christmas break) will be to pick up where they left off last December! The Mortgage Forgiveness Tax Relief Act expired in December 2013.
The Act stops the IRS from taxing "phantom income" credited to short sale sellers. The income these homeowners never actually received. It represents the amount on the 1099-C that the sellers shorted the lender. The lenders have not exercised their right for a deficiency judgement against the sellers but instead forgave the loan debt.
If Congress was filled with even a hand full of short sale sellers, I bet it wouldn't have taken a year to get around to addressing this issue. You would think it would concern them more since it does represent millions of American voters. But if the voters aren't taking a stand against this, why should they? Right???!
This was an enactment in 2007 under then President Bush. It is not an Obama program. Of course it isn't. It has to do with supporting the backbone of middle class America and his administration hasn't done much of that.
Let's hope the Republican Congress will demonstrate care for its constituency. And let's hope Barrack Hussein doesn't damage the fabric of American homeownership in the next two years.
Who does he think is paying for his knucklehead programs anyway?
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