Helping Families Who are “Under Water”
Mortgage Debt Tax Forgiveness
Your Association is working with Congress to retroactively restore a provision that waives income tax on mortgage debt forgiven in a short sale or a workout for principal residences, which expired at the end of 2013. If distressed homeowners have to pay tax on “phantom income” from forgiven debt, many will not go through with short sales or workouts and will go into foreclosure. This adds insult to injury and harms neighborhoods and communities. We are asking Members of Congress to co-sponsor and support H.R. 2994 (House) or S. 1187 (Senate).
Read NAR’s Talking Point for more details: Preserve Real Estate-Related Tax Policies