Mortgage Debt Forgiveness Tax Relief
February 1, 2008 by Miranda Marquit
Filed under Finance
We’re all looking at tax season as it looms upon us. And there are plenty of new rules to consider this year (the forms have barely been changed in time in many cases). And one of those is the rectification of a quirky tax rule.
Before, if you had a measure of mortgage debt forgiveness, you had to count that money as income. You never saw it, and you never spent it. But you still had to pay taxes on it. Thanks to a mortgage debt forgiveness tax relief bill, you don’t have to pay income tax on money that wasn’t really income in the first place.
But it’s only temporary, through 2009 on your primary residence. And cash-out refinancing doesn’t count.
Comments
2 Responses to “Mortgage Debt Forgiveness Tax Relief”Trackbacks
Check out what others are saying about this post...[...] home mortgage loan, how are you to afford the income tax? The other obvious incongruity is that mortgage debt forgiveness is not the same thing as actually being handed a check. You don’t actually see the money, and [...]
[...] keep in mind that tax relief is available for those with mortgage debt forgiveness. If you are concerned about foreclosure, or if you have redone your mortgage terms lately, consider [...]