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| Protecting Your Healthcare Dollar |
| With Americans covering an ever-increasing amount of healthcare expenses from their own pockets, it's never been more important to spend wisely. |
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| What You Need to Know about Cancellation of Mortgage Debt |
| By Linda Goold |
This column is brought to you by the NAR Real Estate Services group.
A lender will, on occasion, forgive some portion of a borrower’s debt. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but, until recently, the borrower was required to pay tax on the debt forgiven. A new law enacted in December 2007 provides relief to troubled borrowers when some portion of mortgage debt is forgiven. However, this ...
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