Solved: Does the mortgage debt relief apply to me since it was in 2016 and for purchase of primary residence?
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Does the mortgage debt relief apply to me since it was in 2016 and for purchase of primary residence?

 
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Does the mortgage debt relief apply to me since it was in 2016 and for purchase of primary residence?

If you qualify, you may not have to pay taxes on the amount of debt that was "forgiven" by your bank (home mortgage debt forgiveness relief)

To qualify:

  • The home must be your main residence (not a vacation home)
  • You can exclude up to $2,000,000.00 in Debt Forgiveness ($1,000,000.00 for Married Filing Separately)
  • The debt forgiveness must have happened on or after January 1, 2007
  • You cannot be in bankruptcy
  • It must be "Acquisition Indebtedness": Debt acquired to purchase, construct, or substantially improve any property that is your main residence. This does not include money acquired through mortgage debt that was used to make another purchase (such as a car) or for the consolidation of other debt.
  • Your mortgage is usually "recourse": The lender can pursue you personally for any deficient balance.






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Highlighted
New Member

Does the mortgage debt relief apply to me since it was in 2016 and for purchase of primary residence?

If you qualify, you may not have to pay taxes on the amount of debt that was "forgiven" by your bank (home mortgage debt forgiveness relief)

To qualify:

  • The home must be your main residence (not a vacation home)
  • You can exclude up to $2,000,000.00 in Debt Forgiveness ($1,000,000.00 for Married Filing Separately)
  • The debt forgiveness must have happened on or after January 1, 2007
  • You cannot be in bankruptcy
  • It must be "Acquisition Indebtedness": Debt acquired to purchase, construct, or substantially improve any property that is your main residence. This does not include money acquired through mortgage debt that was used to make another purchase (such as a car) or for the consolidation of other debt.
  • Your mortgage is usually "recourse": The lender can pursue you personally for any deficient balance.






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