U.S. Senator Dean Heller (R-NV) filed two amendments to the Small Business Jobs and Tax Relief Act (S. 2237). The first amendment would ensure that underwater homeowners would not be soaked with an additional income tax if a part of their mortgage loan is forgiven. Starting next year, homeowners will be required to pay additional taxes when they receive a loan modification or sell their homes in what are commonly called "short sales," if action is not taken.
"No state understands the consequences of falling home values more than the Silver State. Nevadans who are underwater in their homes and have received financial relief for their mortgage could be forced to pay a tax on income they never received if Congress does not act. As we work to get our nation's economy back on track, Congress must provide solutions that help those who are struggling in this current housing market," said Senator Dean Heller.
Heller's second amendment would allow for a permanent deduction of state and local sales taxes.
"The sales tax deduction is an important tax break for Nevada. Extending the tax deduction would help ease some of the stress so many middle-class Nevadans are feeling every day. This amendment will encourage economic growth at a time when we need it the most," added Senator Heller.
In February, Heller joined a bipartisan effort calling on Senate Majority Leader Harry Reid (D-NV) and Republican Leader Mitch McConnell (R-KY) to extend the state and local sales tax deduction. In March, he joined Senator Debbie Stabenow (D-MI) in introducing the Mortgage Forgiveness Tax Relief Act (S. 2250).