Do you know about the recent mortgage debt forgiveness act 2015?if your answer is no then you must read this article to have an idea of mortgage debt forgiveness Act 2015.
The exclusion may apply to amounts cancelled on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. Amounts used for other purposes don’t qualify.
If your lender reduced or cancelled at least $600 of your debt, you should receive Form 1099-C, Cancellation of Debt, in January of the next year. This form shows the amount of cancelled debt and other information. If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. File the form with your federal income tax return.
Unless Congress acts before the end of 2015, homeowners who had their mortgage principal reduced in a loan modification or lost their homes through a foreclosure or short sale will find themselves in this position.Early next year, thousands of American homeowners may get an unpleasant surprise in the mail: a tax statement from their mortgage lender announcing that they may owe tens of thousands of dollars in federal income taxes
Providing assistance to struggling homeowners is incredibly important. Towards that end, Congressman Tom Reed (R-NY) and I introduced H.R. 2994, the Mortgage Forgiveness Tax Relief Act, which would in effect extend the Mortgage Forgiveness Debt Relief Act through 2014. This bipartisan legislation has received favorable support from both parties and currently has 137 cosponsors.
The debt forgiveness law expired at the end of December and is now dead. Owners who are currently negotiating or planning loan modifications or short sales involving cancellation of portions of what they owe in 2015 have no legal protection against big tax bills next year.
The exclusion may apply to amounts cancelled on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. Amounts used for other purposes don’t qualify.
If your lender reduced or cancelled at least $600 of your debt, you should receive Form 1099-C, Cancellation of Debt, in January of the next year. This form shows the amount of cancelled debt and other information. If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. File the form with your federal income tax return.
Unless Congress acts before the end of 2015, homeowners who had their mortgage principal reduced in a loan modification or lost their homes through a foreclosure or short sale will find themselves in this position.Early next year, thousands of American homeowners may get an unpleasant surprise in the mail: a tax statement from their mortgage lender announcing that they may owe tens of thousands of dollars in federal income taxes
Providing assistance to struggling homeowners is incredibly important. Towards that end, Congressman Tom Reed (R-NY) and I introduced H.R. 2994, the Mortgage Forgiveness Tax Relief Act, which would in effect extend the Mortgage Forgiveness Debt Relief Act through 2014. This bipartisan legislation has received favorable support from both parties and currently has 137 cosponsors.
The debt forgiveness law expired at the end of December and is now dead. Owners who are currently negotiating or planning loan modifications or short sales involving cancellation of portions of what they owe in 2015 have no legal protection against big tax bills next year.
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