What Sellers should know about the Mortgage Foregiveness Debt Relief Act not being extended

The Mortgage Forgiveness Debt Relief Act applies to homeowners who are NOT insolvent on the date of the sale.

The internal revenue code has an existing exclusion of forgiven debt from income when the borrower is insolvent on the date of the sale (IRS Publication 4681). this has been an existing part of the tax code for a long time.

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