Free Pass to walk away from recourse debt on primary residence !!!

[HLS]

President Bush on Thursday (12-20) signed a measure to provide tax relief for financially strapped homeowners facing foreclosure. The new law will provide a temporary, three-year change to the tax code to eliminate any taxes home owners may face if a lender forgives a portion of outstanding mortgage debt — whether a deficiency in foreclosure, or a loan modification.

The bill, HR 3648, the Mortgage Forgiveness Debt Relief Act of 2007, had been passed by Congress earlier in the week.

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Congress has passed legislation that limit will provide a temporary, three-year change to the tax code to eliminate any taxes home owners may face if a lender forgives a portion of outstanding mortgage debt — whether a deficiency in foreclosure, or a loan modification.

The House on late Tuesday approved Senate-led revisions to HR 3648, the Mortgage Forgiveness Debt Relief Act of 2007, which essentially limited the tax relief measures to a three-year period. The original House version of the bill would have established a permenant exemption on forgiven debt, something the Bush administration opposed.
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Details to follow,, as well as more foreclosures!

[HLS]

Signed by president on 12-20-2007

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

[HLS]

Signed by president on 12-20-2007

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

[HLS]

Signed by president on 12-20-2007

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

[HLS]

Signed by president on 12-20-2007

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

[HLS]

Signed by president on 12-20-2007

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

[drunkle]

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

10/4/2007–Passed House amended.

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.


hmm. what’s that mean?


Extends through 2014 the tax deduction for mortgage insurance premiums.

didn’t know ins was deductible..


Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.
Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

tax exemption for hoa’s?


Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.


and what is this?

[drunkle]

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

10/4/2007–Passed House amended.

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.


hmm. what’s that mean?


Extends through 2014 the tax deduction for mortgage insurance premiums.

didn’t know ins was deductible..


Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.
Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

tax exemption for hoa’s?


Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.


and what is this?

[drunkle]

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

10/4/2007–Passed House amended.

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.


hmm. what’s that mean?


Extends through 2014 the tax deduction for mortgage insurance premiums.

didn’t know ins was deductible..


Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.
Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

tax exemption for hoa’s?


Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.


and what is this?

[drunkle]

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

10/4/2007–Passed House amended.

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.


hmm. what’s that mean?


Extends through 2014 the tax deduction for mortgage insurance premiums.

didn’t know ins was deductible..


Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.
Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

tax exemption for hoa’s?


Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.


and what is this?

[drunkle]

http://www.govtrack.us/congress/bill.xpd?bill=h110-3648&tab=summary

10/4/2007–Passed House amended.

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.


hmm. what’s that mean?


Extends through 2014 the tax deduction for mortgage insurance premiums.

didn’t know ins was deductible..


Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders.
Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

tax exemption for hoa’s?


Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.


and what is this?

[Eugene]

Out of curiousity, found the transcript of the discussion of this bill in the House.

Everyone was talking about rising foreclosures and dealing with “unfairness” of the existing system. One or two dissenters tried to criticize the fact that the bill increases some other taxes to offset costs. The thought that the bill might spur foreclosures hasn’t even crossed anyone’s mind.

[Eugene]

Out of curiousity, found the transcript of the discussion of this bill in the House.

Everyone was talking about rising foreclosures and dealing with “unfairness” of the existing system. One or two dissenters tried to criticize the fact that the bill increases some other taxes to offset costs. The thought that the bill might spur foreclosures hasn’t even crossed anyone’s mind.

[Eugene]

Out of curiousity, found the transcript of the discussion of this bill in the House.

Everyone was talking about rising foreclosures and dealing with “unfairness” of the existing system. One or two dissenters tried to criticize the fact that the bill increases some other taxes to offset costs. The thought that the bill might spur foreclosures hasn’t even crossed anyone’s mind.

[Eugene]

Out of curiousity, found the transcript of the discussion of this bill in the House.

Everyone was talking about rising foreclosures and dealing with “unfairness” of the existing system. One or two dissenters tried to criticize the fact that the bill increases some other taxes to offset costs. The thought that the bill might spur foreclosures hasn’t even crossed anyone’s mind.

[Author]

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