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Released: September 25, 2011
For homeowners in trouble, a tough decision
Source: Michelle Singletary, Washington Post (Free Registration)
The time is limited for homeowners who want to ensure they aren’t hit with a big tax bill because they had to walk away from a mortgage obligation. At the height of the housing crisis, when foreclosures across the country began a troubling increase, Congress passed the Mortgage Forgiveness Debt Relief Act of 2007, designed to provide at least some consolation to folks who had lost their homes. But it gets complicated. If you borrow money and the lender then cancels or forgives the debt, you generally have to include the canceled amount as income for tax purposes. That’s where the mortgage debt relief act comes in.Read Full Article: For homeowners in trouble, a tough decision
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