Tip 20-2014: Tax Breaks Moving Forward

On May 13^th, the Senate finally agreed to debate EXPRIRE (Expiring Provisions Improvement Reform and Efficiency) a bill that would renew a number of tax breaks that expired at the end of 2013. Included in those tax breaks is the Mortgage Debt Relief Act or Debt Forgiveness Act. Under the Debt Forgiveness Act, assuming the debt forgiven meets certain conditions (purchase money, refinance of purchase money, or money borrowed to improve a residence AND the property is the borrower's primary residence), then there will be no taxable income to the Borrower who lost his home to foreclosure or short sold his home.

If the bill passes, the tax breaks would extend through 2015. Please contact our Senators, Tim Kaine and Mark Warner, and encourage them to grant an extension on this valuable piece of legislature. Please also share this information on social media and encourage others to contact their local Senators. The Debt Forgiveness Act has been the only winner of all federal attempts to deal with country's real estate problems, so it is imperative that we all do what we can to see that this tax break is extended!

 
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, VA
434-973-7474
www.TGBLaw.com