NAR Call For Action: Don't Tax "Phantom Income" on Short Sales
Congress has begun its "Lame Duck" session which is scheduled to end Friday, December 12* with a big list of unfinished business items. Number one on that list for REALTORS® is an extension of "The Mortgage Forgiveness Tax Relief Act."
The United States House of Representatives, extended the income tax exemption on mortgage debt forgiven in a short sale or a workout for principal residences. The bill containing the income tax exemption on forgiven mortgage debt and other expired tax provisions passed by a vote of 378 to 46.
The United States Senate has not yet voted on the measure.
Please contact our Senators if you have not yet done so.
This bipartisan legislation would extend an expired provision that has helped millions of distressed American families by allowing tax relief for homeowners when lenders forgive some portion of the mortgage debt they owe.
If "The Mortgage Forgiveness Tax Relief Act" is not enacted, hundreds of thousands of American families who did the right thing by short-selling their home or received a much needed loan reduction from their lender will have to pay income tax on "phantom income."
Urge our Senators to act on "The Mortgage Forgiveness Tax Relief Act" before the end of 2014 and help provide certainty for struggling homeowners and stability for our nation's housing markets. Click here to take action!