What Are the Tax Implications of a Real Estate Short Sale?
Q: What is the 2007 Mortgage Forgiveness Debt Relief Act?
The Mortgage Debt Relief Act of 2007 may allow a taxpayer to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, generally qualifies for relief.
Q: How long do I have to take advantage of this Act?
This Act applies to debt forgiven in calendar years 2007 through 2012.