Tax Break for Mortgage Debt Forgiveness

what happens if i do deed in lieu of

Hi ejm,

Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/modification-lowincome.html

Take a look at it. I hope it will help you.

I bought a lot in 2006 to build what would had been my primary home. Then the bottom fell out and I was only able to get to the dirt work done before having to go another route and fell behind on my payments. I am on the process of subitting for a DIL. What is going to happen to me? The bank said that I might be hit for the entire amount ($159,000) via 1099. Any advice will be helpful. My credit is already shot, I am needing to minimize the tax hit I will take.

Hi Ted ,

Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about30571.html

Hope it helps you.

What happens after Dec. 2009. Are homeowners not resposible for the capital gains tax?

Hi Guest!

Welcome to forums!

I haven't heard of any such rule stating that after December, 2009, you won't be liable to pay the capital gains taxes. Where did you get this information from?

Sussane

Did they extend the cancellation of debt forgiveness after 12/31/09 yet?

As far as I know, the Mortgage Debt Forgiveness Act is valid upto 2012.

I just did a Google search which turned up an extension until January 2012

is the mortage forgiveness debt relief act still good or did it end in 09

Hi jenrick!

Welcome to forums!

The Mortgage Forgiveness Debt Relief Act has been extended till 2012 as per my knowledge.

Sussane

it applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.

HAFA Lasted untill 2009. It is now 2010. Has it been extended? Thanks gene

Hi Gene,

The HAFA program came into effect from April 5, 2010 and the borrowers can take advantage of this program till December 31, 2012.

Thanks