 |
Daily Real Estate News | September 24, 2007
Law Would Keep IRS from Taxing Foreclosures
The U.S. House Ways and Means Committee is considering legislation that would end IRS's practice of classifying mortgage debt forgiven in a foreclosure as taxable income.
Panel Chairman Charles Rangel scheduled a committee vote on the legislation for this Wednesday and spokesman Matthew Beck says the New York Democrat hopes to win broad bipartisan support for the bill.
Since the 1990s, the NATIONAL ASSOCIATION OF REALTORSŪ has supported efforts to change the so-called "phantom tax" law. "It will relieve a tax burden at a time when an individual has experienced a true economic loss," NAR President Pat V. Combs has said.
The bill also would extend a current tax deduction for mortgage insurance.
Sens. Debbie Stabenow, a Michigan Democrat, and George Voinovich, an Ohio Republican, have sponsored similar legislation in the Senate, but no date has been set for its consideration.
Source: NAR, Reuters News (09/21/2007)
Read More: NAR Says Eliminating 'Phantom Tax' on Foreclosures Good for Consumers
Browse all of today's news
| |
|
RSS Feed