Sentences with phrase «forgiven mortgage debt»

Among other things, the new law extends the tax deduction for mortgage insurance premiums and retains the prohibition on taxing forgiven mortgage debt as income.

According to the report, if Fannie and Freddie were to start forgiving mortgage debt in certain cases, it would save the federal government up to $ 2.8 billion, and help up to 284,000 homeowners lower their debt loads.

The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013.

The act allows homeowners to exclude up to $ 2 million of forgiven mortgage debt from income.6

Homeowners affected by foreclosure or mortgage restructuring excluded $ 94,210 on average in forgiven mortgage debt from their taxable income in 2014.

For calendar years 2007 through 2016, you could exclude up to $ 2 million in forgiven mortgage debt if you were married and filing jointly — up to $ 1 million for other filing statuses.

Moreover, as part of the fiscal cliff deal, the extension of the tax relief for forgiven mortgage debt in 2013, should ensure short sales continue without tax consequences, thereby helping to work off the distressed inventory.

Do all lenders forgive mortgage debt when property values decline or the home is in foreclosure?

Taxing forgiven mortgage debt as income is an unfair practice that also incentivizes defaults and foreclosures, which could torpedo the housing recovery.

Under the Mortgage Forgiveness Debt Relief Act of 2007, borrowers are exempt from taxes on forgiven mortgage debt (short sales, foreclosures or loan modifications) up to $ 2 million on a primary residence.

With the U.S. housing market bloodbath that began in 2008, the tax consequences of forgiven mortgage debt has wider relevance than in pre-meltdown America.

Thanks to the Mortgage Forgiveness Debt Relief Act of 2007, I think many — if not most — taxpayers whose lenders cancelled or forgave mortgage debt in 2012 won't owe tax.

Unless it's extended again by fiscal cliff preoccupied politicians, forgiven mortgage debt will again become taxable effective 01 January 2013.

Broad exclusions apply to cancelled or forgiven mortgage debt.

Taxpayers can learn more about tax deductions for homeowners and other tax situations they may face, like taxes on forgiven mortgage debt and deciding to rent out their home.

That forgiven mortgage debt is treated more favorably than forgiven credit card debt is yet another reason why the received wisdom that you should never ever borrow on your house to pay off credit card debt is not necessarily true.

Lastly, some jurisdictions require filers to pay state income taxes on forgiven mortgage debt, so check with a tax professional about your personal situation.

However, we're hopeful that the act will be extended before it expires on December 31 so sellers don't have to pay taxes on forgiven mortgage debt, which would be unfairly treated as income for owners who are selling under duress,» Thomas said.

Current Law for Mortgage Debt (Jan. 1, 2007 through Dec. 31, 2012): A borrower can be excused from paying tax on forgiven mortgage debt.