Expiring Tax Provisions
2013 Tax Provisions Due To Expire As Of November 2013 - Cancellation Of Debt Income On Primary Residences
Debts that are forgiven or canceled are generally considered taxable income. A notable exception for the years 2007 through 2013 has been available for individuals whose mortgage debt is canceled as a result of a foreclosure, short sale or mortgage restructuring. In those cases, the mortgage debt forgiveness can qualify to be exempt from the income tax. This special provision expires at the end of 2013. For 2014, mortgage debt that is canceled by a lender as part of a loan restructuring or foreclosure or short sale will be taxable, unless other exception applies.
Note If you need professional help with "Expiring Tax Provisions" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.