Title: Mortgage Forgiveness Debt Relief Act of 2007
Vote Smart's Synopsis:
Vote to pass a bill that eliminates the income tax on mortgage debt forgiveness on primary residences for people in financial hardships and lowers the amount of a gain made through the sale of most non-primary residences that is not subject to income tax.
Excludes the debt forgiven on a qualified principal residence from the definition of gross income subject to income tax (Sec. 2).
Reduces the income tax breaks on most gains from the sales of non-primary residences using a formula based on the amount of time that the taxpayer actually lived in the property during the five-year period before the sale (Sec. 5).