The Mortgage Forgiveness Debt Relief Act of 2007 enabled many homeowners to exclude forgiven debt from their mortgages from their taxes. The Act was originally set to expire at the end of 2012 but luckily politicians extended it after the Sequester until the end of 2013. Homeowners who sold their home in a short sale, received a loan modification, or refinanced their home through HARP or other methods may receive a 1099-C form from their lender. Until the end of the year this is not a concern for most people’s income tax return. There are five kinds of cancelled debt which are not taxable and they are listed below.
1. Debt cancellation regarding the principal residence
2. Title 11 bankruptcy case debt cancellation
4. Qualified farm debt forgiveness
5. Real property business indebtedness cancellation
With the deadline for the Mortgage Forgiveness Debt Relief Act extension looming homeowners should examine their homes’ value, the projected value of their home, and whether they should take advantage of available programs. Fannie Mae and Freddie Mac both have programs available which may not be accessible to homeowners with other loan owners. Contact Upside Down CA today, call 916.442.6400.
Realtor.com News - 3 weeks ago
1, 2007, says Brian Ashcraft, director of compliance at Liberty Tax Service. The deduction ... However, under the Mortgage Forgiveness Debt Relief Act, which expired at the end of 2016, homeowners...
NY Daily News - 1 week ago
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Sierra Sun - 1 years ago
As I have discussed previously (blog postings can be read at inclinelawgroup.com/clarity), the Mortgage Forgiveness and Debt Relief Act of 2007 provides a tax exemption for homeowners for...
NerdWallet - 10 months ago
Credit cards, mortgage lenders, the IRS and student loan issuers sometimes forgive your debt. But you don't get to walk away scot-free.and...
Chicago Agent magazine (press release) (blog) - 3 months ago
The U.S. Congress has adjourned for 2016 without extending the Mortgage Debt Forgiveness Act, which will now expire at the end of the year.and...
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