Q:

When was the Debt Relief Act extended?

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Quick Answer

The Mortgage Forgiveness Debt Relief Act was extended on Dec. 16, 2014, by President Obama, according to the Minnesota Homeownership Center. The extension was meant to cover any mortgage debt that had been cancelled earlier in the year.

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Full Answer

The Debt Relief Act, which was enacted in 2007, allows taxpayers to exclude income realized from adjustments in mortgage payments on their principal residence from their taxable income. The main role of this act is to exempt taxes on forgiven mortgage debts. The act was extended to allow more taxpayers to enjoy its benefits. Taxpayers with forgiven debt omitted from their incomes should report the same on their tax returns, according to the Internal Revenue Service.

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