On August 2, the US Senate Committee on Finance released their summary of the Family & Business Tax Cut Certainty Act of 2012 as approved by the Finance Committee. This Act contains legislation that could extend dozens of tax cuts that have expired or are scheduled to expire a the end of this year. Included, is the extended provision for Mortgage Debt Relief.
Currently, taxpayers who have mortgage debt cancelled or forgiven after 2012 may be required to pay taxes on that amount as taxable income. If extended through 2013, up to $2 million of the forgiven debt would be eligible for exclusion from income ($1 million if married filing separately).
Unable to act on the Bill before August break and the party conventions, it’s certainly something to keep an eye on when the Senate reconvenes September 10th.
Curious what other tax cuts are considered in this Act?
Follow the link below to read the summary in it’s entirety:
Are you currently in default or struggling to make your mortgage payments? Want to know how this provision impacts you? Contact me at www.stewartrealestate.com