Get the ‘Tax Forgiveness Act’ Reinstated

The 2007 Homeowners Tax Exemption for Mortgage Debt Relief Act expired on December 31, 2013 and as of yet is still off the table.

imgresCongress originally passed the Mortgage Forgiveness Debt Relief Act to help people who were down on their luck financially because of the loss of their homes. The concern was well placed. If people couldn’t afford to keep their homes, getting a large tax bill just seemed cruel. The tax break was supposed to end in 2009, but it was extended twice because many people still needed help.

Unfortunately the act expired at the end of 2013. This could definitely put a slow down on the real estate market. More than 1.2 million properties are in some stage of foreclosure, RealtyTrac reports. And some states hardest hit by the housing crisis are still seeing high foreclosure rates. And the lack of this tax exemption could stop someone from going through with a much needed short sale. These taxes can be devastating to someone already in a financial hardship.

So what can you do? You can get involved. Pending bills now in Congress would extend the tax break through 2015 and even make it retroactive. Make your voice heard by finding your Congressperson. Send them an email telling them to reinstate the Act and make it retroactive.

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