On October 4, 2007, the House passed H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007, which provides tax relief to homeowners who realize cancellation of debt income on cancellation of mortgage debt. H.R. 3648, if enacted, would exclude from gross income the discharge of debt on a principal home, with a $2 million cap on the amount of forgiven debt that could be eligible for tax exclusion.
Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.