Last I heard congress left town without passing the extension. They promised to pass it when they returned until Dec 31, 2013. We need to find out when they are returning and bombard them with phone calls and letters. This is ridiculous. I had a client who cancelled their short sale when they learned they were not eligible for the tax relief, and their tax liability would be close to $60,000. It's not so bad in the rural areas, but in the metropolitan areas, where home prices are quite high, the tax liability can be enormous! And, personally, I'd like to know what idiot decided that forgiven debt was the same as income! REALLY? Talk about kicking people when they're down. The whole concept ought to be abolished!