Ackerman to Advocate for Tax Relief for Foreclosure Legal Fees Language would be part of Congressional Housing Bill
U.S. Rep. Gary Ackerman (D-NY), a senior member of the House Financial Services Committee, today announced that he will work to pass legislation to allow legal expenses related to foreclosure proceedings to be tax deductible. Ackerman plans to advocate that the proposal be included in the legislation being prepared by the House of Representatives that addresses the nation's housing and foreclosure crisis.
Ackerman's language would provide a one-time, above the line income tax deduction to homeowners in foreclosure for 60 percent of their total legal costs up to $1200.
"Our measure would provide direct assistance to homeowners in foreclosure" said Ackerman. "It would provide needed relief to these individuals - already in tight financial situations - who are forced to shell out even more money for legal fees."
The housing and foreclosure bill, designed to help ease the nation's housing and foreclosure crisis, is expected to be introduced in the House this month. The Financial Services Committee is expected to continue hearings on the legislation today and Thursday.