Mortgage Forgiveness Debt Relief Act

This act, extended through end of calendar year 2013, means that many homeowners who had part of their mortgage debt excused in the qualifying years will not need to pay income tax on this "1099 income." Current qualifying calendar years are 2007 to 2013. 

The exemption expired on 31 December 2013. As of February 2014, there is a bill before Congress that would extend this homeowner debt relief for calendar years 2014 and 2015.  If the Mortgage Forgiveness Debt Relief Act is not extended, homeowners may find relief in insolvency exemptions; ask your tax professional.

If you have recently completed or are considering a short sale, short refinance, cram down, principal reduction, foreclosure, or bankruptcy, please ask your qualified tax professional if you qualify under this act.  For details, please consult the information direct from the IRS below or via this link to the IRS site or consult your tax professional.

Neither Exclusive Homes Group nor Keller Williams Realty is qualified to provide tax advice. This page is not intended to be tax advice and should not be used as such. Please consult with a tax professional.

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Cheryl Tanguay, GRI

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Greater Newburyport
2 New Pasture Road
Unit 1
Newburyport, MA

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