It could be a grim and grinchy December for thousands of home owners facing ongoing challenges with their mortgage payments and property values.
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onto Best Real Estate & Insights November 28, 2016 9:15 PM
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Yikes! Under the federal tax code, when a creditor cancels a taxpayer’s debt, the IRS treats the amount forgiven as income, taxable at ordinary rates. But in 2007, as foreclosures and short sales began to explode across the country, Congress enacted a temporary exemption for home owners who received cancellations of mortgage debt as part of their loan modification deals with lenders. That exception has been extended periodically by Congress ever since.