Mortgage Forgiveness Debt Relief Act Survives Plummet from Fiscal Cliff

The Mortgage Forgiveness Debt Relief Act of 2007, which allows homeowners that are forgiven a portion of their mortgage debt to exclude the amount forgiven from their taxable income, was extended through December 31, 2013.


The Mortgage Forgiveness Debt Relief Act allows taxpayers to exclude this forgiven debt from their income when the debt pertains to their primary residence. This provides greater incentive for distressed homeowners to participate in loss mitigation and foreclosure avoidance options, as their participation is less costly since no increased taxable income exposure exists.

THE FULL ARTICLE CAN BE FOUND HERE: FLORIDA BANKRUPTCY RELIEF