A law that currently provides relief to troubled borrowers when some portion of their mortgage debt is forgiven is set to expire at the end of this year. If that happens, households who were already struggling to pay their mortgage may face tens of thousands of dollars in taxes because the IRS would count the canceled debt as income.
The current law aims to ensure that homeowners are not required to pay income tax when no cash is realized in a transaction. Although the expectation is it will be extended again this year, there are hurdles to overcome. For more information, visit http://speakingofrealestate.blogs.realtor.org/2012/02/16/key-issueto-wat...
Keep Housing First! As the leading advocate for homeownership, NAR is engaged in myriad housing issues on behalf of homeowners and aspiring homeowners. To demonstrate their commitment to housing advocacy, REALTORS® from across the country will Rally to Protect the American Dream in Washington, DC. May 17, 2012. Talk to your local REALTOR® association to find out if they will attend, and to learn more about the issues at stake.