|Mortgage Forgiveness Debt Relief Act (January 2, 2013)|
The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31.
Without an extension, homeowners who completed short sales or mortgage modifications may have faced tax bills in the tens of thousands of dollars. Some industry officials feared that would hurt the housing recovery.
“This extension will help struggling homeowners take full advantage of the assistance offered them by the national mortgage settlement and other foreclosure relief programs,” Florida Attorney General Pam Bondi said in a statement Wednesday. “We need to continue to do everything we can to help Floridians who are doing the best they can to pay their bills and stay in their homes.”