Massachusetts S1959 promotes mortgage debt relief by excluding certain forgiven mortgage debt from gross income.

Massachusetts S1959 amends state law to exclude from gross income certain forgiven mortgage debt on a principal residence, subject to limits. The exclusion applies to debt reduced through mortgage restructuring or forgiven in connection with a foreclosure, with a cap of $2,000,000 for joint filers and $1,000,000 for those filing separately. This exclusion applies only to "acquisition indebtedness" and takes precedence over insolvency exclusions unless elected otherwise. The bill applies to discharges of indebtedness on or after January 1, 2013.

Massachusetts S1959 promotes mortgage debt relief by excluding certain forgiven mortgage debt from gross income.

Massachusetts S1959 amends state law to exclude from gross income certain forgiven mortgage debt on a principal residence, subject to limits. The exclusion applies to debt reduced through mortgage restructuring or forgiven in connection with a foreclosure, with a cap of $2,000,000 for joint filers and $1,000,000 for those filing separately. This exclusion applies only to "acquisition indebtedness" and takes precedence over insolvency exclusions unless elected otherwise. The bill applies to discharges of indebtedness on or after January 1, 2013.