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Short sale tax break passes in House

Now on to the Senate

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.

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