Good News Comes Early This Year
Rather than the White Knuckle Ride of 2014, Congress and the President appear to be treating short selling home owners in 2015 to a White Christmas. The black mark of debt forgiveness is being washed clean, at least for tax purposes. For those successfully completing a short sale of their primary residence in 2015 & 2016, the Mortgage Relief Debt Forgiveness Act is being revived and should relieve sellers of the obligation to pay tax on the phantom income attributed to them by lenders after a short sale.
Read the latest reason for Cheer at http://thehill.com/policy/finance/263394-struggling-homeowners-regain-tax-break-in-extenders-package