Jump to Navigation
We can handle your closing anywhere in the state.
Subscribe to This Blog's Feed

President Obama extends Mortgage Debt Forgiveness Act

If you had to sell your home in a short sale in 2015, you may be in luck on your taxes. President Obama has signed a federal spending bill into law that will extend the Mortgage Debt Forgiveness Act as far as 2017.

Previously, this act was going to expire at the end of 2015, so anyone who received a mortgage forgiveness during a short sale would have had to count that forgiveness amount as income on their tax returns. That could result in extremely high taxes for people who were already struggling.

Because the United States has been in a recession and is in economic recovery, the plan was introduced to help homeowners. Now, the goal of extending the bill has made headlines as more people can benefit from the relief on his or her 2017 tax bills.

The bill, an extension, was included in the 2016 federal appropriations and tax relief bill. This bill recently passed through both the Senate and House of Representatives, and the president signed shortly thereafter, making it legal for homeowners to discharge, and have forgiven, the so-called income they gain through the debt forgiveness.

If you're going through a short sale or are considering it, now may be a good time to begin. The extension only lasts a short time currently, and it won't be determined if the forgiveness will be further extended for some time. At present, there are no indications that the forgiveness will last beyond 2016 and entering into the 2017 tax year. If you have questions about how this can affect your taxes, your attorney can help you understand your rights.

Source: HousingWire, "Short sale tax break on verge of being extended until 2017," Ben Lane, Dec. 18, 2015

No Comments

Leave a comment
Comment Information
Tell Us About Your Transaction

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Weeks & Irvine at One of Our Six Locations

North Charleston office 8086-B Rivers Avenue
North Charleston, SC 29406
Phone: 843-553-9800
Toll Free: 800-553-7449
Fax: 843-553-9804
Maps and Directions

Mt. Pleasant office
1100 Queensborough Blvd, Suite 102
Mt. Pleasant, SC 29464
Phone: 843-856-9800
Toll Free: 800-553-7449
Fax: 843-216-0930
Map and Directions

Mt. Pleasant North office
3040 Highway 17-A North, Suite B
Mt. Pleasant, SC 29466
Phone: 843-388-3250
Toll Free: 800-553-7449
Map and Directions

West Ashley office
873 Orleans Road, Suite 102 1/2
Charleston, SC 29407
Phone: 843-571-2996
Toll Free: 800-553-7449
Fax: 843-571-2998
Map and Directions

Summerville office
106 West 7th North St
Summerville, SC 29483
Phone: 843-875-7111
Toll Free: 800-553-7449
Fax: 843-875-7721
Map and Directions

Goose Creek office
567 Crowfield Blvd.
Goose Creek, SC 29445
Phone: 843-553-9100
Toll Free: 800-553-7449
Fax 843-553-9183
Map and Directions