Real Estate Law
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"This provision applies to debt forgiven in calendar years 2007 through 2014. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.'
There is legislation trying to be passed to extend to 2015-16, however this would be considered taxable income.
This is a link for the proposed extension https://www.congress.gov/bill/114th-congress/house-bill/1002
We need to keep our fingers crossed that this passes. So many people are still reeling from the impact of the these guaranteed to fail loans. As of today you are at risk of paying the deficit, unless or until the passes.
Do you have any additional questions for me today?