Washington Report

Advocacy Updates from Washington D.C.

New Legislation Would Extend Mortgage Cancellation Relief

April 2, 2012

Three bills have been introduced by members of the tax-writing committees that would extend the 2007 mortgage cancellation relief that is currently scheduled to expire at the end of 2012. Senators Stabenow (D-MI) and Heller (R-NV) have introduced S 2250 along with several bipartisan cosponsors. Almost all members of the House Ways and Means Committee have cosponsored either H.R. 4336 (Reed -- R-NY) or H.R. 4202 (Rangel - D-NY). While these bills are unlikely to move as stand-alone legislation, having these extensions introduced as separate legislation underscores their importance. More than five dozen tax provisions expired at the end of 2011, and a few dozen more, including mortgage cancellation tax relief, will expire at the end of 2012. Congress has not yet given any signal as to how or when to package these provisions and move them through the process.