New Tax Breaks a Relief to Homeowners

Posted under Housing Bubble, Real Estate, Recession, Short sales by Darren Hom

http://www.bankrate.com/cnn/news/real-estate/20080110_mortgage_tax_relief_a1.asp?prodtype=mtg

EXCERPT

3 new tax breaks promise to help homeowners:

1. Homeowners who experience a foreclosure, short sale, deed in lieu of foreclosure or loan modification may be able to exclude lender-forgiven mortgage debt from taxable ordinary income.
2. Homeowners may be able to deduct the cost of mortgage insurance.
3. A homeowner whose spouse has died may be allowed up to two years to exclude $500,000 of profit from the sale of a principal residence from capital gains tax.