https://www.nolo.com/legal-updates/mortgage-forgiveness-tax-break-extended-through-2020.html For homeowners who experienced the mixed blessing of completing a short sale in 2020, and had mortgage debt forgiven, the need not include the cancelled debt amount in the income for federal tax purposes. Please read the fine print in an article by Attorney Amy Loftsgordon entitled: Mortgage Forgiveness Tax Break Extended Through 2020….