The House Passes Tax Relief for Homeowners

Today the House passed on a legislation that will help homeowners that have to restructure their mortgages to avoid foreclosure.

As it is right now when a lender agrees to take less money to allow a borrower to sell their home for less than their mortgage the lost amount is reported to the IRS as income to the borrower.  This new legislation will help borrowers by not classifying this loss as income for the borrower. The legislation is only a temporary assistance as it would only last for the next three years to alleviate pressure on the housing market from the subprime crisis.

Last week the Senate passed its version of this legislation very similar to this one. The next step will be for lawmakers to take the two different versions and agree to some of the differences.

To read more about the house passes tax relief for struggling homeowners head on over to Yahoo News.