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Tax Law Changes

Mortgage Debt Forgiven

Taxpayers can exclude up to $2 million of debt forgiven on their principal residence.  The limit is $1 million for a married person filing a separate return.  This provision applies to debt forgiven in 2007, 2008, or 2009.  Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure qualify for this relief.

 

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