Thanks to those members and consumers, who participated in the recent Call to Action regarding Mortgage Debt Forgivess Tax Relief. Your voices were heard! We just got this news from the National Association of REALTORS®.
The Senate passed mortgage debt cancellation relief as part of a large "tax-extender" bill just before adjourning for the year, giving REALTORS® a hard-fought legislative victory.
The provision prohibits the IRS from taxing debt lenders forgive in a short sale, foreclosure, or loan modification for the 2014 tax year.
The House passed the provision last week, and President Obama is expected to sign it into law.
The legislation also includes one-year extensions of the 15-year depreciation schedule for leasehold improvements and the deduction for improvements to energy efficient commercial buildings.
"We are grateful to Sens. Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., and Reps. Tom Reed, R-N.Y., and Charlie Rangel, D-N.Y., for championing the provision," NAR President Chris Polychron says in a statement.
NAR also pressed lawmakers to extend terrorism risk insurance, which is critical to commercial mortgage finance, but that provision will have to be taken up in 2015 under the new Congress.