1 Jan. - You may be back on the hook for income taxes to be paid on "forgiven" mortgages

[Anti Federalist]

Mortgage Relief Tax Exemption Set To Expire, Threatening Struggling Homeowners

Posted: 11/24/2012 9:33 am EST Updated: 11/24/2012 9:45 am EST

http://www.huffingtonpost.com/2012/11/24/mortgage-relief-tax_n_2176013.html?ref=topbar

WASHINGTON -- Beginning on Jan. 1, people who lose their home to foreclosure will be required to pay federal taxes on any unpaid mortgage the bank can't recoup through an auction. The same will be true for homeowners whose loan principal is reduced by a mortgage modification, with the wiped-out loan being treated as taxable income.

The new tax obligation will hit because the Mortgage Forgiveness Debt Relief Act expires at the end of the year. The 2007 law was passed to save struggling homeowners from getting whacked twice, first by the sagging housing market and second by the Internal Revenue Service. Its expiration could push more people to remain in homes worth less than their mortgages, slowing the housing market's recovery.

[CaptainAmerica]

what a scam.The bank seized the property yet forces someone else to pay the tax hah,sick JOKE.

AMERIKAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

[Anti Federalist]

what a scam.The bank seized the property yet forces someone else to pay the tax hah,sick JOKE.

AMERIKAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

Awesome, ain't it?

I don't think they'd have the gall to try that even in China or Cuba.

'Merica!

[satchelmcqueen]

unfuckingbelievable!

[angelatc]

Mortgage Relief Tax Exemption Set To Expire, Threatening Struggling Homeowners

Posted: 11/24/2012 9:33 am EST Updated: 11/24/2012 9:45 am EST

Its expiration could push more people to remain in homes worth less than their mortgages, slowing the housing market's recovery.

Uhm - wot? Less foreclosures would push prices up.

[angelatc]

what a scam.The bank seized the property yet forces someone else to pay the tax hah,sick JOKE.

AMERIKAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

It's really a sham. The principle is the same as credit card debt. If I spend $100,000 on my credit card, pay off $40,000 then stop paying...and the credit card card forgives the debt, the IRS considers it income and taxes it as such. Which sort of makes sense, because I got $100,000 worth of stuff.

Mortgage debt isn't the same at all though. If I buy a $100,000 house, and I default after paying $10,000 down and $30,000 in principle, I didn't somehow keep $70,000. The seller got it, and the bank gets the house.

[Anti Federalist]

Uhm - wot? Less foreclosures would push prices up.

I can't speak for the author, I frankly don't give shit what it does to the market, I looked at it strictly from a "liberty" perspective.

But I'll guess they are figuring that the loss of this tax "break" would lead to a general decline market activity.

[phill4paul]

Doesn't affect me. Those that it does that have excoriated me for Ron Paul and his beliefs,,, BWAHAHAHA!

[Anti Federalist]

It's really a sham. The principle is the same as credit card debt. If I spend $100,000 on my credit card, pay off $40,000 then stop paying...and the credit card card forgives the debt, the IRS considers it income and taxes it as such. Which sort of makes sense, because I got $100,000 worth of stuff.

Mortgage debt isn't the same at all though. If I buy a $100,000 house, and I default after paying $10,000 down and $30,000 in principle, I didn't somehow keep $70,000. The seller got it, and the bank gets the house.

This!

Only a wholly broken and thoroughly cowed and domesticated citizenry would sit still and accept the notion that this is somehow "taxable income".

A vibrant citizenry in a healthy culture would have 1,000,000 people in the streets over this.

[paulbot24]

This is too bold.....even according to the "new normal" rules of Obama and his IRS army. You might get your wish AF. You might actually see large protests over this.....until it gets really cold or something, or it's dinnertime....

[Anti Federalist]

This is too bold.....even according to the "new normal" rules of Obama and his IRS army. You might get your wish AF. You might actually see large protests over this.....until it gets really cold or something, or it's dinnertime....

Or something's on TV...or the ball game....