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Thinking of Walking Away From Your Home? Here’s IRS’s Rules

Generally, the Internal Revenue Service (IRS) treats debt forgiveness by a creditor as taxable income. However, under federal legislation that took effect in 2007, certain home mortgage debt cancellations—such as loan modifications, short sales, or foreclosures—may be exempted from federal taxes. Other exemptions are also available. Important rules to consider • Homeowners considering a loan […]