Sign In | Create an Account | Welcome, . My Account | Logout | Subscribe | Submit News | Staff Contacts | Home RSS
 
 
 

Debt Forgiveness in Challenging Times

February 19, 2009 - Sylvia Heldreth
As an attorney in a troubled economy, clients have begun to ask me about the tax aspects of debt that has been forgiven as the result of foreclosure.Basically, debt forgiven as the result of foreclosure had been subject to tax until the passage of the Mortgage Forgiveness Debt Relief Act of 2007.

This Act excludes from gross income up to $2million of cancellation of debt income (debt on foreclosed properties) if the debt reduction is for qualified principal residence indebtedness between January 1, 2007 and December 31, 2009.

Some people think this Act is a blessing but others say that those having debt forgiven should have handled their finances better.

What do you think?

 
 

Article Comments

No comments posted for this article.
 
 

Post a Comment

You must first login before you can comment.

*Your email address:
*Password:
Remember my email address.
or
 
 
 

 

I am looking for:
in:
News, Blogs & Events Web