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Article: On Deadline.(law for protection of mortgage taxes)(distribution of drug discount cards by credit unions)(Federal Home Loan Bank of San Franciscos housing grant to credit union)
- Article from:
- Credit Union Journal
- Article date:
- December 24, 2007
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Congress Moves To Protect Forgiven Debt
WASHINGTONCongress passed legislation last week to protect mortgage borrowers from having to pay taxes on debt forgiven in a bankruptcy or restructuring, which is expected to prompt an increase in bankruptcy filings among troubled homeowners. The bill will spare homeowners for three years from taxes as high as 35% on canceled mortgage debt. Under current law, any forgiven mortgage debt is taxable as income.
Homeowners who restructure their mortgages to avoid foreclosure should not be hit with a tax bill as a result, Treasury Secretary Henry Paulson said. This legislation will temporarily exclude homeowners who have ...