Posted on: 05th May, 2009 07:02 pm
if i used credit cards to make improvements on our principal residence and then refinanced to pay off those credit cards (used to pay for home improvements), will i qualify for the tax relief act if i do a short sale or a deed in lieu of foreclosure?
thanks, jan
thanks, jan
Welcome Janet,
As far as I know, the debt used to refinance your home qualifies for Mortgage Debt Forgiveness Tax Relief Act, however, only to the extent that the principal balance of the old mortgage just before the refinancing, would have qualified.
As far as I know, the debt used to refinance your home qualifies for Mortgage Debt Forgiveness Tax Relief Act, however, only to the extent that the principal balance of the old mortgage just before the refinancing, would have qualified.