Mortgage Debt Cancellation Relief
NAR supports an exclusion from taxation of the "phantom income" generated when all or a portion of a mortgage loan is forgiven.
The Senate Finance Committee has crafted and sent to the full Senate a package that would extend the mortgage relief provision for an additional year, through Dec. 31, 2013.
A law enacted in December 2007 provides relief to troubled borrowers when some portion of mortgage debt is forgiven. That relief expires on Dec. 31, 2012. Use this information to better understand mortgage debt cancellation.
Three bills have been introduced by members of the tax-writing committees that would extend the 2007 mortgage cancellation relief that is currently scheduled to expire at the end of 2012.
In the 6-minute video, NAR Director of Tax Policy Linda NAR Director of Tax Policy Linda Goold talks about the hurdles facing extension of the popular mortgage cancellation law designed to help hard-hit home owners.