One step closer to forgiveness
The House voted 386-27 today to approve a bill that would erase the tax bill that many homeowners face when a lender forecloses on a home and forgives some of the debt. Under current law, that forgiven debt is often taxed as income. The bill was spurred by fears that as many as 2 million families could lose their homes because they can’t afford to pay or refinance subprime mortgages issued during the housing boom.
The Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648) also would extend the tax deduction for private mortgage insurance and limit how much capital gain some wealthier homeowners can shelter when selling vacation or rental properties.
The bill is pending in the Senate.
An aside: To help out reporters, the Ways & Means Committee that originates tax legislation and is chaired by New York Democrat Rep. Charles Rangle, beamed out a press release that lauded the bipartisan vote and quoted nine representatives who voted for its passage. Funny, but all nine of these bipartisan supporters are Democrats. Apparently claiming credit is not as bipartisan.
This is just insult to injury these poor people should not be taxed
So now we are going to reward stupid people for doing dumb things? What kind of benefits can I get for taking care of my money? I guess my reward will be buying a home at a fraction of the price from a year ago huh?
Apparently, Congress can’t muster any forgiveness for the financially prudent. Who else is there to pay the tax bills for the actions of the irresponsible?
These people have not suffered any injury. They recklessly gambled on a house they couldn’t afford, and they lost. Now they will just rent like they should have done all along.
The only insult is to the people who are responsible with their money who are going to have to pay for the stupid and or greedy people who lose thier houses.