House panel weighs tax relief on mortgage debt (Reuters)

[Eugene]

Source: Reuters

House panel weighs tax relief on mortgage debt
Fri Sep 21, 2007 1:31pm EDT

WASHINGTON (Reuters) - Homeowners who lose their
house to foreclosure would no longer face a federal
tax bill for their unpaid mortgage debt under a bill
being drafted in U.S. House of Representatives, a
congressional aide said on Friday.

The legislation is being written by the U.S. House
Ways and Means Committee in response to the
subprime mortgage crisis and the spike in
delinquencies due to rising interest costs.

The legislation would end the practice by the Internal
Revenue Services of classifying mortgage debt forgiven
in a foreclosure as taxable income, which has left many
who have lost their homes with an unexpected bill.

Panel Chairman Charles Rangel scheduled a committee
vote on the legislation for Wednesday and spokesman
Matthew Beck said the New York Democrat hopes to win
broad bipartisan support for the bill.

-snip-

Read more: http://www.reuters.com/article/politicsNews/idUSN2134451820070921

[Trillo]

1. Hope it gets some support. n/t