Washington Report

Advocacy Updates from Washington D.C.

Obama Recommends Extension of Tax Relief

February 20, 2012

President Obama's FY 2013 Budget, presented to Congress February 13, includes a recommendation that Congress extend the mortgage cancellation tax relief provisions. Those rules allow an individual to exclude from taxable income some or all of the mortgage debt that a lender might forgive in a foreclosure, short sale or loan modification. That relief is currently scheduled to expire as of January 1, 2013. The President has proposed extending it for an additional 2 years, through December 31, 2014. The extension will require legislation; NAR expects that bills will be introduced in both the House and Senate in March.

For additional information, please visit our information on mortgage debt cancellation.