Cliff Deal Keeps Tax Help for Homeowners

Congress‘s fiscal-cliff deal extends a tax break for struggling homeowners that advocates say is key in supporting distressed communities and the housing market.
The Mortgage Forgiveness Debt Relief Act of 2007, signed into law, enables struggling homeowners to avoid paying taxes on forgiven mortgage debt from short salesor loan modifications.  The tax break was scheduled to expire in the new year, but has been extended

English: Mortgage debt
English: Mortgage debt (Photo credit: Wikipedia)

through 2013.

“This relief has helped to boost short sales-a smoother way to sell a distressed property, helping the recovery in home prices.

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