Mortgage Forgiveness Debt Relief Act
June 24th, 2016
The Mortgage Forgiveness Debt Relief Act (“MFDRA”) prevents homeowners who went through a short sale, foreclosure sale, a principal reduction, or otherwise received a waiver of a mortgage debt regarding their primary residence from being taxed on the amount of mortgage debt cancelled or forgiven. Many homeowners have used the MFDRA in prior years to prevent large tax liabilities.
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