PRESIDENT SIGNS TAX BILL TO HELP FORECLOSED HOMEOWNERS
December 21, 2007
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President Bush signed a bill yesterday that gives a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan, the Associated Press reported yesterday. Currently such debt forgiveness is categorized as taxable income. No taxes would be owed under the new law on the value of any debt forgiven or written off. “When you’re worried about making your payments, higher taxes are the last thing you need to worry about,” Bush said. While the measure is anticipated to reduce taxes of some strapped homeowners by $650 million, the cost to the government would be offset in part by limiting a tax break available on the sale of second homes. Read more.
President Signs Tax Bill To Help Foreclosed Homeowners
