The Mortgage Forgiveness Debt Relief Act of 2007, enacted in December, promises to afford a bit of tax relief to current and prospective owners of real estate. Included among three tax breaks of special interest to homeowners is a provision regarding forgiveness of debt. From the Naples Daily News:
“…This bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive,” President Bush said in his remarks upon signing the law.
To see the rest of the article, including two other specific tax breaks that may be of interest to Naples property owners, see the full article at NaplesNews.com
Be aware that one deduction only applies to taxpayers with adjusted gross incomes of less than $100,000. Prospective owners of Park Shore or Moorings residences may not qualify.
But don’t let that stop you from buying, because there are some deals to be had! Check it out.