Congress passed important tax extensions including the Mortgage Forgiveness Tax Relief Act that prevents underwater borrowers from paying taxes on mortgage debt depending on your home value. This legislation was very important to the REALTOR® community, and is now headed to President Obama’s desk. National Association of REALTORS® President Chris Polychron issued the following statement on the passage of this important legislation: “The package of tax extensions approved by the U.S. House and Senate and headed to the President’s desk for signature, includes important provisions that will help distressed homeowners and commercial property investors with transactions made during 2014.” NAR applauds Congressional leaders in both chambers for their effort to pass this legislation before adjournment. REALTORS® strongly supported the bipartisan Mortgage Forgiveness Tax Relief Act, which was included in the package to prevent underwater borrowers from paying taxes on any mortgage debt forgiven or cancelled by a lender in a workout or after their home was sold for less money than was owed. Click here for a detailed look at how this has helped so many people and in turned helped entire communities. We are grateful to Senators Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., and Representatives Tom Reed R-N.Y., and Charlie Rangel, D-N.Y., for championing the provision. “The legislation also includes one-year extensions of the 15-year depreciation schedule for leasehold improvements and the deduction for improvements to energy efficient commercial buildings.” This blog is not published only for informational purposes and should not be taken as legal or tax advice. Consult an attorney or tax professional before making any financial decisions.