Mortgage debt forgiveness-taxable income?
The Mortgage Forgiveness Debt Relief Act became federal law in 2007. It allowed taxpayers to avoid income taxes on unpaid mortgage debt, including debt reduced through short sale, mortgage modification or foreclosure. The original Act had been extended through 2016, but it is unclear whether a Trump presidency or Republican-controlled Congress will seek to extend this homeowner protection. Today, U.S. Senator Debbie Stabenow (D-MI) introduced a bi-partisan bill to extend the