What is Mortgage Forgiveness Debt Relief Act and Debt Cancellation?

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in [...]

Cancellation of Debts: Are they forgiven?

We have been asked this question many times, and frankly, we don’t even know the full answer until someone pointed us to the right answer. Here, we are posting mainly the excerpts from IRS website. Also, we do not provide any tax law information and neither we are competent in these matters. If you have [...]