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Naomi Estes' Blog

By Naomi Estes | Agent in Miramar, FL
  • Mortgage Forgiveness Debt Relief Act of 2007

    Posted Under: Home Selling  |  April 21, 2012 12:07 PM  |  26 views  |  No comments

    In 2007, congress enacted the Mortgage Forgiveness  Debt Relief Act of 2007,
    a provision that allows you to exclude up to $2 million of debt forgiveness income
    from a short sale or foreclosure. The debt cancelled must be related to your Principal
    residence to qualify for the relief, and up to $2 million of forgiven debt is excluded if
    you are single or married, $1 million if married filing separate. This provision applies to
    debt forgiven through December 31, 2012.

    If you are underwater you have until the end of this year  2012 to to sell
    your home and qualify for this tax relief.
 
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