The NATIONAL ASSOCIATION OF REALTORS® has issued a nationwide Call-for-Action, urging members to contact their Members of Congress in support of extending the current Mortgage Debt Forgiveness Tax Relief law. If the law is allowed to expire, homeowners who negotiate a short sale or lose their homes through foreclosure would have to pay federal taxes on the amount forgiven by their lender. Congress will go back into session following this week’s elections and it’s essential that they extend this law before the end of the year.
Once the federal law has been extended, C.A.R. will advance legislation to have the state law conform and provide the same relief from state income taxes.