Massachusetts S1879 amends tax law to exclude up to $2 million of forgiven mortgage debt from gross income for principal residences.

Massachusetts S1879 amends the state tax law to exclude from gross income up to $2 million of forgiven mortgage debt on a principal residence. This exclusion applies to mortgage debt forgiven in connection with a foreclosure or reduced through mortgage restructuring. The exclusion is limited to $1 million for taxpayers filing separately under federal law. The exclusion takes precedence over other insolvency exclusions unless otherwise elected. The Act applies to discharges of indebtedness on or after January 1, 2013.

Massachusetts S1879 amends tax law to exclude up to $2 million of forgiven mortgage debt from gross income for principal residences.

Massachusetts S1879 amends the state tax law to exclude from gross income up to $2 million of forgiven mortgage debt on a principal residence. This exclusion applies to mortgage debt forgiven in connection with a foreclosure or reduced through mortgage restructuring. The exclusion is limited to $1 million for taxpayers filing separately under federal law. The exclusion takes precedence over other insolvency exclusions unless otherwise elected. The Act applies to discharges of indebtedness on or after January 1, 2013.