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This page contains all of the posts and discussion on MemeStreams referencing the following web page: Some homeowners miss out on housing recovery - Chicago Tribune. You can find discussions on MemeStreams as you surf the web, even if you aren't a MemeStreams member, using the Threads Bookmarklet.

Some homeowners miss out on housing recovery - Chicago Tribune
by Decius at 6:44 pm EDT, Jul 20, 2014

In 2007, Congress passed a law, which was twice extended, exempting a homeowner from being taxed on debt that was forgiven as part of a short sale or a loan modification. Otherwise, canceled debt is treated as taxable income by the IRS.

Without the act and assuming a 28 percent tax bracket, every $10,000 in forgiven debt would make a homeowner liable for an additional $2,800 in taxes. The "extra" income could also push someone into a higher tax bracket.

But the Mortgage Forgiveness Debt Relief Act expired Dec. 31, and legislative efforts to extend the tax break and make it retroactive to Jan. 1 have faltered, stuck in committee.

Congress doesn't care about underwater home owners.


 
 
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