Senate repeals tax on mortgage forgiveness
Save Email Print
Bookmark and Share
Posted: 12:13 AM Dec 15, 2007
Senate repeals tax on mortgage forgiveness
The Senate has passed a bill written by Senator Debbie Stabenow that would allow homeowners to receive mortgage forgiveness from their lender tax-free.
Reporter: Associated Press
Font Size:

The Senate has passed a bill written by Senator Debbie Stabenow that would allow homeowners to receive mortgage forgiveness from their lender tax-free.

Some homeowners are being forced to pay an income tax when they've had a part of their mortgage loan forgiven or have been forced to foreclose.

Stabenow says no one facing the loss of their home should have to deal with an additional tax bill. The Michigan Democrat says the bill is a first step.

Michigan has one of the nation's highest foreclosure rates and has recorded more than 135,000 foreclosure filings this year.

The IRS currently taxes any loan forgiveness as income. The tax forgiveness is available on mortgage indebtedness of up to $1 million.
More Stories

WNDU News Poll
There are currently no active polls at this time.
Click here to view other polls on our site and past poll results.
Most Popular Headlines