You May Not Have To Pay Taxes on Forgiven Debt
People who have lost their homes through foreclosure (or short sales) or who have restructured their mortgage loans may qualify for tax relief under a new tax law, the Mortgage Forgiveness Debt Relief Act of 2007. Highlights of Mortgage Debt Relief: You may exclude up to $2 million of debt forgiven or canceled by a mortgage lender on a main home. Both mortgage restrucuring and foreclosures qualify Now available for the years 2007 through 2012. For more information, go to The Mortgage Forgiveness Debt Relief Act and Debt Cancellation .