Foreclosures Used to Carry Big Tax Burden, But Not Anymore
April 23rd, 2008 by 
Joseph Smith
In the past, undergoing a foreclosure not only ruined your credit and lost you your home, it also left you with a huge tax burden at the end of the year. Even though you retained nothing from the amount garnered by your property’s sale, the IRS used to count the sale as income, and expect it to become part of your taxable income.
But now that the foreclosure epidemic has reached such big proportions, a new bill has been passed in order to ease the burden on foreclosed homeowners. The Mortgage Forgiveness Debt Relief Act of 2007 makes it much easier for people to avoid the huge tax hit that comes with a foreclosure but critics have argued that since it has been passed, it has not received enough attention, and thus the majority of homeowners still don’t know about it.
Now that foreclosure prevention centers are popping up so readily however, many believe that people will start to learn about and take advantage of the chance for foreclosure debt relief.
Learn about tax foreclosure properties and real estate land for sale.
