As of now, it appears likely that the Mortgage Debt Relief Act will expire on January 1, 2014. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
However, there is a proposed Bill that will extend the Act from January 1, 2014 to January 1, 2016. The issue is that the proposed Bill has been tabled “in House committee” since July 23, 2013 and there is no indication as to when or if the Bill will be passed.
As always, Berlin Patten will continue to monitor and update the status of the Mortgage Debt Relief Act, so stay tuned. In the meantime, please contact your local real estate attorney with any questions or comments you have with respect to the expiration of the Mortgage Debt Relief Act.
Sincerely,
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