Tag Archives: taxable

Is Cancellation of Mortgage Debt taxable?

This is a question we get many times, especially during the economic downturn. The IRS is actually here to help the taxpayer and here is their ruling: Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal [...]

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