For those who find themselves owing more than then can get for their homes, the Mortgage Forgiveness Tax Relief Act is a big deal.
After all, if a homeowner takes part in a short sale or workout deal on a home they own, they could be hit with taxes on the portion of the deal seen as forgiven debt.
The Mortgage Forgiveness Tax Relief Act expired in 2013. Unfortunately, the need for the law hasn’t gone away as there are still many homeowners who face the financial double jeopardy of selling at a loss and getting hit with a hefty tax bill.
As Congress heads back for the final legislative session of the year, NAR is asking members to urge extension of this important legislation. Do your part by clicking here and sending a message to your representative or senator.
According to NAR:
Despite significant market recovery, more than 5 million are still “under water.” Nearly 1 million households are seriously delinquent on their mortgages or in foreclosure.
Do your part now. Help millions of people who need this assistance.