The Mortgage Forgiveness Debt Relief Act passed in 2007 was set to expire on Dec. 31st, 2012 but fortunately our legislators were able to see the value of extending it through 2013.
In my opinion this extension will need to be extended yet again unless we see a miraculous turn around in our economy this year. One of the principal tax benefits that the act provides is the ability for a home owner to short sell a property or restructure mortgage debt without the fear of the value of the forgiven debt being taxed as income.
If you believe that you could benefit from this program please take the time to read more about it on the IRS website: http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-.
Call Williams Realty to discuss your situation, we can help you assess your options and plan for your future. You can find us on the web at www.WilliamsRealty.us.