The National Association of Realtors needs all real estate professionals to
contact their members of congress and extend the Mortgage Debt Forgiveness Tax
Relief Act!
If the Act is not extended the homeowners may have to pay tax on the
"phantom income" from forgiven debt. The forgiven debt is income that is not
money in hand from a sale. The homeowner is upside down or under water on their
mortgage. For example if you owe $200,000 on your mortgage and your home is only
worth $150,000 and it sells for $150,000 there is $50,000 forgiven by Lien
Holder that could be an addition to the homeowners 2014 annual tax. The
homeowner did not realize the $50,000 in Income it was forgiven debt.
The Mortgage Debt Forgiveness Tax Relief Act ended in 2013 and if Congress
does not work through the lame duck session and extend the Act homeowners could
possibly have to...http://www.realestateresource.tv