Earlier this month we told you how NAR was working to extend tax relief for homeowners who had some or all of their mortgage debt forgiven.
Congress adjourned in 2013 without taking up the bill. (While there had been some movement in the Senate, the House didn’t take action on its version.)
Last week came some good news: Congressman Bill Foster (D-Illinois) introduced the Homeowners Debt Relief Extension Act (H.R. 3856), which would extend the mortgage debt tax exemption that’s been in place since 2007 for another two years.
Foster’s bill would ensure any qualifying reduction or cancellation of mortgage debt is not considered taxable income by extending this tax relief through January 1, 2016, for debt forgiven after December 31, 2013.
Remember to express the importance of this issue to your senators and your representative, and how it is causing uncertainty in the market. And click here to get more information on the issue from NAR.