Posts Tagged ‘debt forgiveness’
Foreclosure and Your Taxes
Question: We bought our home in a new Gilbert subdivision six years ago. Although there has been some appreciation lately, our home is worth only $260,000. We still owe $380,000 on the mortgage. After my husband lost his job last year, we finally had to stop making payments, and the foreclosure occurred this February.…
Read MoreAdios to Mortgage Forgiveness Tax Relief Act ("Act")
The general IRS rule is that any forgiveness of debt will be taxable. In response to the housing disaster of the mid-2000’s, the Act was passed by Congress in 2007 to give relief to taxpayers who had debt forgiveness as the result of either a foreclosure or a short sale. The Act was subsequently extended…
Read MoreMortgage Debt Relief Extended Another Year
The Mortgage Debt Relief Act (“MDRA”) enacted in 2007 was scheduled to expire December 31, 2012. In the “fiscal cliff” legislation just enacted by Congress, however, the MDRA has been extended until December 31, 2013. Therefore, after a foreclosure or a short sale of a home in Arizona, any debt forgiveness of a mortgage loan…
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