House Acted in Light of Senate-Whitehouse Conflict

Lending / The Ticker

Short sale tax break passes in House

Now on to the Senate

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Homeowners who had short sales in 2014 may not be facing massive tax bills after all, after the House of Representatives passed a one-year extension of the Mortgage Debt Forgiveness Act on Wednesday.

According to a report from the Chicago Tribune, the House passed the extension of Mortgage Debt Forgiveness Act, which was included in the Tax Increase Prevention Act of 2014, by a 378-46 margin.

With over 170,000 short sales completed nationwide in the first three quarters of 2014,   and an average of just over $10,000 in tax due on the forgiveness under these short sales, Congress is giving up maybe 1.7 Billion in income . . .     if it can ever be collected, if the former homeowners do not create of glut of new filings in bankruptcy court, . . . or bog down the IRS with insolvency filings .  . . . or spend the money on really good CPAs, etc., followed by a vote on the next election cycle against anyone who  allowed this tax to happen . . . .

As indicated earlier today . . . the ball should soon be in the President’s court.  Stay tuned.