Congress Extends Mortgage Debt Relief Act to January 1, 2014

imagesIn the law to avoid the so-called “Fiscal Cliff” passed on New Year’s Day, Congress extended  to January 1, 2014, the exclusion from gross income of discharged mortgage debt from a qualified principal residence.  See, Section 202 of the American Taxpayer Relief Act of 2012:

“SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

(a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’.
(b) EFFECTIVE DATE.—The amendment made by this section shall apply to indebtedness discharged after December 31, 2012.”

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