Kurland Law Group
Personal Service Se Habla EspaƱol Reasonable Fees Free Phone Consultation
Rockville Office 301-637-0354
We Can Make a Difference for You or Your Business

Mortgage Debt Relief Act Extension

There was a lot of speculation going into the new year regarding whether or not the Mortgage Debt Relief Act of 2007 would be extended through 2013. The Mortgage Debt Relief Act protects distressed homeowners from having to pay taxes on the difference between the amount owed on the mortgage and the price of the short sale. For example, if a homeowner had a mortgage of $200,000, and the bank agreed to a short sale of $100,000, the IRS would assess the $100,000 difference from the distressed homeowner. Forgiven debt is normally considered taxable income, but under the Mortgage Debt Relief Act of 2007, distressed owners do not have to consider their discharged debt as income (for their primary residence). Fortunately for these homeowners, the Congress came together to extend the legislation through 2013.

No Comments

Leave a comment
Comment Information

Get the Help You Deserve. Contact Us Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy