The Mortgage Forgiveness Debt Relief Act of 2007 was extended to Dec.
31, 2013. This law allows affected taxpayers to exclude income from the
discharge of debt on their principal residence as a result of a debt
cancellation. Learn more
IRS announces guidance on the principal reduction alternative offered in the Home Affordable Modification Program (HAMP).
The guidance affects homeowners who obtained a qualified home loan
modification with a principal reduction on transactions conducted before
Jan. 1, 2014. Borrowers are encouraged to talk with a licensed tax
consultant. The guidance can be found here.