Sunday, September 18, 2011

Mortgage Cancellation of Debt Tax Relief

The Mortgage Relief Act , which effects debts discharged on or after Jan 1, 2007 and before Jan. 1, 2013, generally allows taxpayers to exclude up to $2 million per married couple of mortgage debt forgiveness on their principal residence (does not include second homes or income property).

Many people discover to their dismay that when a loan debt is forgiven by a lender, not only can this impact a credit report, it can result in additional taxes. This provision provides some relief.

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