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Obama signs tax bill that features major mortgage deductions

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Mortgage Professional America | 30 Dec 2014, 08:49 AM Agree 0
President Barack Obama signed into law a bill that includes deductions for mortgage insurance premium interest and tax relief on forgiven mortgage debt.
  • Wm Matz | | 30 Dec 2014, 02:20 PM Agree 0
    Folks, I am a tax attorney. This [and most] article grossly overstates the effect of the mortgage forgiveness relief.
    1. The relief only applies to "acquisition indebtedness". Borrowers with cash out refis receive little or no protection.
    2. In states, such as CA, that have strong anti-deficiency protection, the borrowers are often already protected.
    3. Other borrowers may qualify for relief under the bankruptcy or insolvency exceptions.

    Borrowers facing this issue need to see an attorney, not an accountant, as questions of state law will often control the Federal tax consequences.
  • Michael H. | | 31 Dec 2014, 11:36 AM Agree 0
    What does the legal crystal ball see for 2015... ? We can not be expected to run our brokerage and advise our Seller clients during the entire year shy two weeks then amend and turn those decisions over when someone signs a retroactive bill into law the last week... can you imagine the discussion we would have... Short Sale or Foreclosure ? I advise going this way because I see the President and Congress overturning the present ______ law at the last minute and making it retroactive... right ! I wish the tax law would be in concrete as of Jan. 1st and remain unchanged til Dec. 31st - Period. Any future changes should only go into effect the following year so that people (taxpayers) could plan and have a life strategy... goes for Obama Care Capital gains and the whole gambit.
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