Cancellation Of Indebtedness To Be Extended?

The National Association of Realtors (NAR)reports that President Obama’s fiscal year 2013 budget presented to Congress in February, 2012 includes a recommendation to extend the mortgage cancellation tax relief provisions. Currently, homeowners who have their home foreclosed are not required to count the forgiven debt as taxable income. However, the provisions excluding the cancelled debt are set to expire on December 31, 2012. At the time of NAR’s report, it was expected that bills would be introduced in both the House and the Senate in March, 2012.