Right now, the Mortgage Forgiveness Debt Relief Act is still set to expire at the end of this year, 2012. That's the bill that allows people who have had housing debt forgiven via Short-Sales, Foreclosure, and Loan Modifications not have to pay taxes on the amount forgiven.
L. A. Times, one of my daily Real Estate reads, notes:
The Senate Finance Committee has approved a bipartisan bill that would extend the Mortgage Forgiveness Debt Relief Act through 2013.
and points out:
It was after heavy lobbying by the National Assn. of Realtors and the National Assn. of Home Builders. The bill, which now moves to the full Senate for possible action next month, also would extend tax write-offs for mortgage insurance premiums for 2012 and through 2013 and continue some energy-efficiency tax credits for remodelings and home construction.
Read the Full Article Here: Senate Panel Wants To Extend DRA
Now, we can only hope that this settled BEFORE the election. If not, then we are struggling to see who is in and what their decision is. To continue the help, or cut it off?