Why is TT stating that cancelled mtg debt is excluded from taxation due to new law if it is for main home? That expired in 2016???

It was brought back to life. https://ttlc.intuit.com/questions/4241639-tax-relief-the-bipartisan-budget-act-of-2018

 

Cancelled, forgiven, and discharged debt is considered taxable income, unless it qualifies for an exclusion or an exception.

Normally the debt is reported on Form 1099-C. Make sure you enter your 1099-C in TurboTax even if it qualifies for an exclusion or an exception.

Exclusions

• Cancellation of qualified principal residence indebtedness, better known as mortgage debt relief;
• Debt cancelled in a Title 11 bankruptcy;
• Debt cancelled during insolvency (the amount exceeding your assets);
• Cancellation of qualified farm or real property indebtedness.

If the debt qualifies for any of these exclusions, TurboTax will complete Form 982 and include it with your return.

 

*This exclusion expired at the end of 2017, but now is extended to January 1, 2021 and applies retroactively to 2018 and 2019.