ROSKAM PROVIDES TAX RELIEF FOR DISTRESSED HOUSING MARKET
Washington, Oct 4 - Congressman Peter J. Roskam (R-IL) today released the following statement after passage of H.R. 3648, the Mortgage Forgiveness Debt Relief Act:
"As a father of four, I understand how fuel costs, healthcare costs and rising mortgage rates are increasing the financial pressure on Chicagoland families.
"I came to Washington to try to help the working families of the Sixth District make it to the next level. As such, I was pleased to cast a vote today in favor of easing the burden on financially troubled homeowners."
H.R. 3648 shields mortgage write-offs from taxation, and extends the current-law exclusion of mortgage insurance premiums from gross income for tax purposes. Under current law, gross income for tax purposes includes such income that is realized by a debtor from the discharge of indebtedness. For example, if a taxpayer owns a home subject to a $350,000 mortgage debt, and if a creditor forecloses and sells the home for $300,000 in satisfaction of that debt, the taxpayer effectively realizes $50,000 in gross income. H.R. 3648 remedies this state of affairs by allowing exclusion from gross income such a discharge of indebtedness on a taxpayer's principal home.