Welcome! Login | Register
 

The Scoop: R.I. Society of Certified Public Accountants Endorses Almonte—Welcome back to The Scoop, the 4 p.m.…

East Bay Center Event To Honor Dr. Michael Fine and Barrington Police Chief—The East Bay Center will host its inaugural…

Smith Hill CDC and Sojourner House Open Housing for Domestic Violence Victims—Smith Hill Community Development Corporation (CDC) and Sojourner…

The Scoop: Fung Poll Shows Dead Heat With Raimondo—Welcome back to the Scoop! This is a…

BBB Warns Consumers of Online Retailer, shopZoey.com—Better Business Bureau is warning consumers about shopZoey.com,…

Russell Moore: Buddy Still Favorite in Mayoral Bid—In the aftermath of Jorge Elorza's dramatic upset…

LISTEN: Election 2014: Candidates’ Strengths and Weaknesses—Who has what it takes to win this…

Smart Benefits: Are Double-Digit Premium Increases a Thing of the Past?—A new study on employer health benefits from…

College Admissions: Which New England Grads Make 6 Figures?—As more attention from the federal government focuses…

National Land Conservation Conference to be Held in Providence—The National Land Conservation Conference, will be held…

 
 

NEW: Kilmartin Applauds Congress for Extending Mortgage Debt Relief

Friday, January 04, 2013

 

With Congress extending tax relief for homeowners who have mortgage debt canceled or forgiven because of financial hardship or a decline in housing values, Attorney General Kilmartin applauded the move as continued progress to right the housing market in Rhode Island.

“The extension of the Mortgage Debt Relief Act will help homeowners who were negatively impacted by the housing market crash and who have seen some relief through the national Mortgage Settlement avoid an unexpected tax bill at the end of the year,” said Kilmartin. “The mortgage modification and debt relief programs under the national Mortgage Settlement are providing real relief to homeowners fighting to keep their homes and trying to get back on their feet. If Congress had failed to extend this relief, the progress made to help many Rhode Island homeowners would have been cut by higher taxes.”

Under the federal Mortgage Debt Relief Act, in effect since 2007, mortgage debt that is forgiven after a foreclosure or short sale or through a loan modification provided to a homeowner in financial hardship may be excluded from a taxpayer’s calculation of taxable income. This exclusion only applies to mortgage debt forgiven on primary residences, not second homes.

Originally written to apply through the end of 2009, the act was extended in 2008 to six years and would have expired Monday if Congress had not acted.

In November, Attorney General Kilmartin along with 42 fellow attorneys general, called on Congress to extend the Mortgage Debt Relief Act.

 

Enjoy this post? Share it with others.