The Mortgage Debt Tax Relief Act will extend the tax cut and these additional. The IRS previously taxed any loan forgiveness provided to.

. bipartisan bill that would extend safe harbor for mortgage debt relief. ask: Didn't Congress extend the Mortgage Forgiveness Debt Relief Act.

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Congress has extended the Mortgage Forgiveness Debt Act, which protects forgiven debt in short sales from taxes, to 2017. In addition to extending the Mortgage Debt Relief Act, Congress’ tax legislation also included the following measures

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The mortgage forgiveness debt relief act has been a very important factor in a decision to short sale, foreclose or look into a bankruptcy. Read the IRS rules of The Mortgage Forgiveness Debt Relief Act and Debt Cancellation here. But YES! It appears to be extended through to January 1, 2014.

The Mortgage Forgiveness Debt Relief Act was signed into law in 2007. It removes tax liability for qualifying homeowners whose mortgage debt was forgiven. The original act was only active through 2009, but the IRS has extended the policy every year through 2017.

These 56 sections — collectively referred to as the "extenders" would. 2011, Congress would extend them for 2012 prior to their expiration date.. entire purpose is to compel taxpayers to act in a certain manner.. Section 108(a)(1)(E ): Exclusion for Forgiveness of Debt on Principle Residence Mortgage.

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. mortgage forgiveness debt relief act extended for only one more year, the time to act may be now. It’s best to talk with your tax professional, financial planner, and local real estate agent to.

The most recent extension covered home mortgage indebtedness discharged. expired on December 31, 2017 and would not apply to debt forgiven in 2017.. The Act revives the exclusion from taxable income for qualifying.

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. can tell the Mortgage Forgiveness Debt Relief Act, which prevents underwater homeowners from having to pay income tax on the phantom income generated when their mortgage lender forgives a portion.

If the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended by Congress by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is.

The Mortgage Forgiveness Debt Relief Act was extended through Jan. 1, 2014 as part of H.R. 8, the legislation Congress sent to the President on Jan. 2 2013 to avoid the "fiscal cliff." H.R. 8 also.