Phantom Tax Relief bill signed into Law
By: Antonio Vega-Pacheco Real Estate Views: 6238 | Comments: 0 | Votes: 0
Until now (12/07), if the value of your house declines and your bank/lender forgives a portion of your mortgage (via a short sale or deed in lieu), the tax code treats the amount forgiven as ordinary taxable income. For a borrower already financially strapped, this makes a bad situation worse. More