| | Advanced Search

 

Ric Santurri: Solomon – Do As I Say, Not As I Do—As the Democratic primary for Mayor of Providence…

LISTEN: 72% of 2014 Gubernatorial Campaign Expenditures Spent Out of State—While each candidate for Governor talks about creating…

Gary Sasse: Are Gubernational Candidates Being Realistic and Focused?—As Rhode Island enters the homestretch of the…

Chef Walter’s Flavors + Knowledge: Blueberry Crisp—Blueberry crisp is a popular comfort-dessert, relatively simple…

Brewed Awakenings in Warwick To Open in September—Brewed Awakenings' fifth and largest coffee house will…

Tufts Health Plan and Radio Disney Brought Magic of Healthy Living to Pawtucket—Tufts Health Plan and Radio Disney AM 1260…

RI Groups Urge Police to Support Public’s Right to Record Police Activity—Nine local organizations have asked police departments across…

Fun, Fun, Fun - Beach Boys Play Newport—A spirited crowd filled the Newport Yachting Center…

Organize + Energize: 10 Ways to Make Your Mornings Easier—How many of you rush around in the…

Dear John: Does He Have a Secret Life?—She found lipstick in his car...

 
 

NEW: Kilmartin Calls on Congress to Extend Tax Relief for Distressed Homeowners

Tuesday, November 20, 2012

 

Attorney General Peter F. Kilmartin has joined a national effort by state and territorial attorneys general to urge Congress to extend tax relief for consumers who have mortgage debt canceled or forgiven because of financial hardship or a decline in housing values. Attorney General Kilmartin was one of 42 attorneys general to sign on to a letter to U.S. House and Senate leaders today, urging them to extend the tax relief, which will otherwise expire on December 31, 2012.

Such legislation is currently included in Section 112 of the Family and Business Tax Cut Certainty Act of 2012 (S3521), which was recently passed out of the Senate Finance Committee with bipartisan support.{image_1

The expiration comes at a time when many homeowners nationwide are benefitting from the $25 billion national settlement agreement with the nation’s five largest loan servicing companies. Attorney General Kilmartin announced on Monday that more than 1,000 Rhode Island homeowners had received financial relief, valued at more than $73 million, from the national mortgage settlement.

“I urge Congress to extend this critical tax exclusion so that the very families who least can afford it are not stuck with an unexpected tax bill at the end of the year,” said Attorney General Kilmartin. “The mortgage modification and debt relief programs under the national Mortgage Settlement are providing real relief to homeowners fighting to keep their homes or and trying to get back on their feet. Unless Congress acts, any progress made to right the housing market by the debt relief provided under the National Mortgage Settlement, as well as other mortgage debt relief programs, will likely be undone.

Under the federal Mortgage Debt Relief Act, in effect since 2007, mortgage debt that is forgiven after a foreclosure, short sale, or through a loan modification provided to a homeowner in a 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.

 

Enjoy this post? Share it with others.

Comments:

Which begs the question, why pay my mortgage?

Comment #1 by Max Diesel on 2012 11 20

Where's the relief for the people who never missed a payment. Who have paid every penny on their taxes. Who have never received a penny worth of help in their payments, even though their property equity plummetted?

When do we get OUR relief?

Only the people who shouldn't have been approved for their loans in the first place?

Comment #2 by pearl fanch on 2012 11 20

Local relief from back breaking property taxes would go along way to helping distressed home owners too.

Comment #3 by David Beagle on 2012 11 21




Commenting is not available in this channel entry.