The Mortgage Forgiveness Debt Relief Act Has Been Extended!

HAPPY NEW YEAR!

To begin 2013, there has been an awful lot of concern among real estate professionals and homeowners regarding the Mortgage Forgiveness Debt Relief Act of 2007, which was set to expire on December 31, 2012.

We are happy to report that the Mortgage Forgiveness Debt Relief Act has been extended through January 1, 2014, by the American Taxpayer Relief Act of 2012 (more commonly referred to as the “Fiscal Cliff”), which was passed both through the Senate and House over the past few days.

SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS:

(a) IN GENERAL.-Subparagraph (E) of section 108(a)(1) is amended by striking ”January 1, 2013” and  inserting ”January 1, 2014”.

(b) EFFECTIVE DATE.-The amendment made by this section shall apply to Indebtedness discharged after December 31, 2012

This is good news for many local homeowners who are working through a short sale, deed-in-lieu, or a foreclosure.

Read the IRS rules of The Mortgage Forgiveness Debt Relief Act and Debt Cancellation here.

Sincerely,

Berlin-Patten, PLLC

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

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One thought on “The Mortgage Forgiveness Debt Relief Act Has Been Extended!

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