Realvolution

Published January 4, 2020

New Federal Budget Extends Mortgage Forgiveness Exclusion

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Written by Jamie Reece

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The newest Federal Budget recently passed has extended expired provisions which provide exclusion of income up to $2,000,000 for the discharge of debt from principal residence. This exclusion expired in 2017, and with the new budget has been renewed and extended through 2020.

The specific bill was the Taxpayer Certainty and Disaster Tax Relief Act of 2019 which became law through the adoption of the Further Consolidated Appropriations Act, 2020.

For more information about mortgage debt cancellation, and to determine if you may qualify for this exclusion, please visit the IRS's Home Foreclosure & Debt Cancellation page (please keep in mind it may take a few weeks for the IRS to update based on the adoption of this new law).

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