|
|
|
          
|
 Foreclosure Crisis - Stabenow: No Tax on Forgiven Debt Amid the escalating foreclosure crisis, Michigan’s U.S. Senator Debbie Stabenow is working to alleviate the extra pain the IRS brings in the form of tax burdens on forgiven debt. A bill introduced by Stabenow in May – S. 1394: Mortgage Cancellation Relief Act of 2007 – is currently under consideration by the Senate Finance Committee. Stabenow is working with the chairman and other members of the committee to get the legislation to the full Senate by the end of the year. A similar House bill – H.R. 3648 –passed in early October. Stabenow’s legislation would exclude discharges of indebtedness attributable to certain forgiven residential mortgage obligations from gross income of individual taxpayers. “This bill will prevent additional, unfair economic hardship in the lives of those who find themselves in truly unfortunate circumstances,” Stabenow explained. “It is wrong to tax families when they are experiencing economic hardship and losing their home,” said Stabenow. “This legislation is of critical importance to Michigan. “Last year our state ranked fifth in foreclosures, with one out of every fifty-two households affected,” Stabenow noted. “That fact, coupled with a decrease in home values across the state means numerous Michigan families and being unfairly taxed by the IRS.” President George Bush has publicly supported Stabenow’s bill. |
 |
  |
||||||||||||||
|
| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
