CALL FOR ACTION!
Congress will soon return to session and they will be discussing a housing issue that could affect almost one-quarter of all real estate transactions – the expiration of Mortgage Forgiveness Tax Relief.
Why is this so important?
Homeowners shouldn’t be forced to pay tax on money they’ve already lost with cash they never received – and never will receive.
~More than 20% of current homeowners with a mortgage owe more on their homes than the current fair market value.
~Transactions not completed by year-end could become taxable in 2013, despite a borrower’s reliance on this tax relief.
~The housing market, while recovering, is still fragile enough that this tax relief will be needed in 2013 and possibly beyond.
“Without action before the end of the year, millions of families who hold distressed properties could face a hefty tax bill for trying to modify their mortgage or to seek a short sale through their lender. Even those facing foreclosure will find themselves forced to pay a “foreclosure tax” if Congress doesn’t act. This is because the amount of debt forgiven by the lender would be considered “phantom income” to the borrower even though they never receive any payment from the lender. No taxpayer should be forced to pay tax on money they’ve already lost with cash they never received. We need no new obstacles that might throw the housing recovery off track.”
This quote is from the call to action at the National Association of REALTORS site. They have issued this brief to outline the issue:
If you agree that this tax relief should continue, please take a moment to send that message to your representatives here.