Welcome Relief for Homeowners, Then the Tax Bill
We’re still anxiously awaiting Congress’ extension of the Mortgage Forgiveness & Debt Relief Act (MFDRA) for 2014. I am optimistic that Congress will extend the MFDRA to provide relief to homeowners. Even without the extension of the MFDRA, the IRS allows exceptions that may eliminate any tax burden after the cancellation of mortgage debt. Ask your accountant about IRS Publication 908.