Federal Mortgage Tax Cancellation Relief Now Extended

The rules for Federal Mortgage Cancellation Relief Now Extended enacted in 2007 were scheduled to expire December 31, 2009. The relief package enacted shortly before the 2008 election extended the relief through December 31, 2012. If the short sale seller satisfies the requirements they will continue to receive tax relief when a lender cancels all or some portion of the debt associated with their principal residence. In a short sale normally debt forgiveness results in taxable … [Read more...]