QPRI EXCLUSION

Normally, debt forgiven is income to the debtor. The Further Consolidated Appropriations Act, 2020, signed on December 20, 2019, extends the Qualified Principal Residence Indebtedness (QPRI) exclusion. This allows homeowners after a foreclosure, loan modification, short sale, or deed in lieu of foreclosure to exclude the forgiven amount from their income for tax purposes. 

In such circumstances, the homeowner will receive a 1099-C (Cancellation of Debt) form from their bank. If the QPRI exclusion applies, the forgiven amount is not considered income. This will apply to debts forgiven in tax years 2018 through 2020.

NEW YORK DIVORCE - FINANCIAL ISSUES TO BE CONSIDERED

Currently attending several matrimonial CLE's at Suffolk County Bar Association, and meeting up with one of the CLE sponsors Mark S. Gottlieb CPA, P.C., I forward this article from his offices:

Financial Issues to Consider During and After a Divorce

MORTGAGE FORECLOSURE - THE CURRENT DOWNSIDE OF A SHORT SALE AND LOAN MODIFICATION REDUCTION

A reminder that the federal Mortgage Forgiveness Debt Relief Act of 2007 was allowed to expire December 31, 2013 and the effect on short sales and loan modifications that involve reductions:

NY TIMES - Welcome Relief for Homeowners, Until the Tax Bill Arrives