IRS updates the new rules for "exclusion for forgiven home mortgage debt"!
Recently, the IRS announced that "the exclusion for forgiven home mortgage debt would be extended for 3 years!" Clearly, the intent here is a recognition that the home mortgage crisis that has severely crippled the US housing market is anticipated to cause further problems for another 3 years. Hence, the IRS proposed extending the provision for 3 years. This should come as a welcome relief to many suffering the trauma of a home foreclosure.