The good news is there are several circumstances when the IRS can not peg a tax
bill on your forgiven debt.
They can choose to refinance their homes but this will result in a tax
bill on the forgiven debt and their only option is a short sale or a full foreclosure.
Not exact matches
In 2028, a minimal amount of added income will be tacked
on to my tax
bill as
forgiven debt.
Bill, The Mortgage
debt relief act of 2007 seems clear in the sense that you are exempt from the amount
forgiven in the short sale of your home based
on your 1099C.
Just be aware that if a
debt is
forgiven, you could be sent a 1099 - C form from the hospital to claim
on your taxes, which can result in a hefty tax
bill.
While
on Capitol Hill, REALTORS ® will urge their elected officials to preserve current real estate - related tax policies and extend the Mortgage Forgiveness Tax Relief Act, which expired at the end of 2014 and prevents distressed homeowners from facing excessive income tax
bills on forgiven home loan
debt.
Sen. Orrin Hatch, R - Utah, in late August introduced a
bill (S. 1282) that would legislate relief for these borrowers, who now pay taxes
on any portion of their mortgage
debt forgiven by their lenders.
Bill, The Mortgage
debt relief act of 2007 seems clear in the sense that you are exempt from the amount
forgiven in the short sale of your home based
on your 1099C.