Budget Deal extends the Mortgage Forgiveness Debt Relief Act

[stu2002]

The fiscal cliff deal extends the Mortgage Forgiveness Debt Relief Act of 2007, for another year, meaning homeowners who experience a debt reduction through mortgage principal forgiveness or a short sale are exempt from being taxed on the forgiven amount.

http://www.housingwire.com/news/2013/01/02/mortgage-industry-fares-well-fiscal-cliff-deal-debt-forgiveness-law-survives