Political Cries For Mortgage Debt Tax Forgiveness Grow

Law360, New York (January 8, 2014, 4:35 PM EST) -- A political push for mortgage debt forgiveness is escalating, and on Tuesday Rep. Joe Courtney, D-Conn., became the latest lawmaker to urge Congress to pass legislation that would shield homeowners from paying taxes on mortgage debt that is forgiven in mortgage modifications or short sales.

The federal Mortgage Forgiveness Debt Relief Act of 2007 allowed homeowners to exclude forgiven mortgage debt from their reportable income, but the provision expired at the end of 2013. Lawmakers introduced legislation at the end of the year to extend the...
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