Description:
This article discusses the tax implications of the 2007 Mortgage Forgiveness Debt Relief Act, which "provides some relief for homeowners who lose their house through foreclosure or short sales, or who restructure their mortgages with a lower principal amount." Topics include canceled debt at taxable income, separating acquisition debt and home equity debt, insolvency and bankruptcy exclusions, and reporting canceled debts. Includes links to IRS material. From a tax professional, written for About.com. |