Archive for July, 2009

post thumbnail

Mortgage Forgiveness Debt Relief Act

Mortgage Forgiveness Debt Relief Act

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

6 comments | Continued