Mortgage Forgiveness Relief Act of 2007
NOTE: reinstated for tax year 2018 and extended trough 2020
Beginning January 1, 2007 many taxpayers may be able to exclude from tax up to $2 million of mortgage debt forgiveness. This type of cancelled debt
is normally reported to the taxpayer on a Cancellation of Debt Form 1099-C.
Other conditions that apply are:
Mortgage must be for principal residence, not vacation, rental or business property
Does not apply to home equity debt used for purposes other than acquiring, constructing or improving a principal residence
Exclusion is available through 2020
Find more details on IRS website here
|
|
