Tag Archives: Mortgage Debt

Mortgage Debt Forgiveness Excluded from Taxable Income Until the End of 2012

Under the Mortgage Debt Relief Act of 2007, mortgage debt forgiveness is excluded from taxable income until the end of 2012.

If your mortgage debt has been forgiven after a foreclosure, short sale or loan modification, you may be able to exclude the canceled debt from your taxable income.

If you are currently thinking about having a short sale and it takes over nine months to complete the process, you may end up with tax penalties unless the bill gets extended.

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