Forgiveness of debt has its costs!
Under The Bipartisan Budget Act of 2018 (BBA), homeowners will have the capability to exclude the mortgage debt that was forgiven in 2017 on a principal residence from the gross income. In addition, it also allows for the modification to exclude debt discharged later than 2017 corresponding to a written agreement that was recorded in 2017. Otherwise, taxpayers would have to pay income taxes on the forgiven mortgage debt sum. This video reviews that in 2019, a bill may again be considered to “amend the Internal Revenue Code to make permanent the exclusion from gross income of income attribute to the discharge of qualified principal residence indebtedness” (formerly introduced as H.R. 110 in 2017). A delay in finalizing was due in part to the December 2018 government shutdown.
IRS CIRCULAR 230
Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.
Marcia L. Miller, M.B.A., E.A.
Financial Horizons, Inc.
- President and owner of Financial Horizons, Inc., a full service accounting and tax firm
- Enrolled agent entitled to practice before the Internal Revenue Service
- 40 years of accounting, tax and management consulting in South Florida for a practice with an emphasis on representing small business owners in all aspects of taxes, employment and labor issues, pensions, estate planning as well as federal, state (nationwide) and foreign mandatory reporting
- Federal appointment successfully completed for a three year term to the Internal Revenue Service's Information Reporting Program Advisory Committee (IRPAC)
- Author, speaker and teleconference expert, for various national companies and accounting organizations at their annual conferences, lecturing on a multitude of tax, technical and non-technical topics focusing on the areas of tax planning, management and health care reform
- Managing director, Transition Advisors, LLC, leading CPAs through transition with succession and M & A strategies
- Live presenter at the 2016 CCH Annual User's Conference and FICPA Chapter meetings regarding Succession Planning for CPAs
- Previous nationwide presenter of tax legislative seminars for Thomson Reuters' Bell Learning Series on current business taxation and accounting issues
- Former adjunct professor at Nova Southeastern University's H. Wayne Huizenga School of Business and Entrepreneurship
- M.B.A. and B.B.A. degrees, University of Miami School of Business
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