Bank of America informed the real estate agent community that Congress has extended the certain provisions of the Mortgage Forgiveness Debt Relief Act through the American Taxpayer Relief Act of 2012 until December 31, 2013. This act benefits qualified homeowners who may have otherwise owed taxes on forgiven debt after going through a short sale.
Homeowners will continue to receive their 1099-C forms. Homeowners should always consult their tax advisor so they can evaluate their personal situation and understand their tax payments.
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This post was written by Gina Berg