According to a report by the National Association of REALTORS®, President Barack Obama is expected to sign into law a “tax-extender” bill that will provide mortgage debt cancellation relief.
According to NAR:
That step is possible because earlier this week, the Senate passed a provision of the bill just before adjourning for the year, giving REALTORS® a hard-fought victory. The provision prohibits the Internal Revenue Service from taxing debt that lenders forgive in a short sale, foreclosure or loan modification for the 2014 tax year, reported the NAR. The House passed the provision last week.
According to an email from NAR to members: “The legislation also includes one-year extensions of the 15-year depreciation schedule for leasehold improvements and the deduction for improvements to energy efficient commercial buildings.”
“We are grateful to Sens. Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., and Reps. Tom Reed, R-NY, and Charlie Rangel, D-NY, for championing the provision,” NAR President Chris Polychron said.
NAR also pressed lawmakers to extend terrorism risk insurance, which is critical to commercial mortgage finance, but that provision will have to be taken up in 2015 under the new Congress.
For more information, go to The Voice for Real Estate.