Mortgage Forgiveness Debt Relief Act 2010 is Sure to Help
Article by Mortgage Guru
If you have had debt that was cancelled or forgiven, then the cancelled amount may be taxable. The debt from mortgage was also considered in a similar way. When a home was sold by sale or by foreclosure, if the amount got from the sale was less than the original debt owed, the balance amount to be owed was cancelled by the lender. But, this cancelled amount had always been considered taxable. The Mortgage Forgiveness Debt Relief Act 2010 was passed to help the already financially burdened home owners from being taxed for the forgiven amount. This Act was passed as an extension to the Federal Mortgage Debt Relief Act 2007. The law permitted the exclusion of the forgiven amount from the primary mortgage loans. The California residents had to pay for the forgiven amount, as the state