Tax forgiveness for the 2014 tax year for mortgage debt that is forgiven or cancelled by the lender in a workout or after their home was sold in a short sale. President is expected to sign the bill.
Palm Coast, FL – December 18, 2014 – “The package of tax extensions approved by the U.S. House and Senate, and headed to the President’s desk for signature, includes important provisions that will help distressed homeowners and commercial property investors with transactions made during 2014,” says National Association of Realtors® President, Chris Polychron.
The bipartisan Mortgage Forgiveness Tax Relief Act was included in the package to prevent underwater borrowers from paying taxes on any mortgage debt forgiven or cancelled by a lender in a workout or after their home was sold for less money than was owed.
The legislation also includes one-year extensions of the 15-year depreciation schedule for leasehold improvements and the deduction for improvements to energy efficient commercial buildings.