The income tax exemption on mortgage debt forgiven in a short sale expired at the end of 2013. Without immediate action by Congress, distressed homeowners will have to pay tax on the 'phantom income' from their forgiven debt.
That means that hundreds of thousands of American families who did the right thing by short-selling their home will have to pay income tax on 'phantom income.' This is not only unfair but harms families, neighborhoods, and communities.
- Despite significant market recovery, more than 5 million Americans are still "under water."
- Nearly 1 million households are seriously delinquent on their mortgages or in foreclosure.
- Mortgage debt relief is vital for these families.
Please help provide certainty for struggling homeowners and stability for our nation's housing markets. Urge Congress to extend the Mortgage Debt Forgiveness Tax Relief Act today!