WASHINGTON — The House narrowly passed the Temporary Tax Relief Act of 2007 (H.R. 3996) on Nov. 9, which included language to eliminate mortgage debt forgiveness from gross income for tax purposes.
The bill's primary purpose is to protect millions of American taxpayers from the alternative minimum tax, a key issue for the Republican administration. The AMT was put in place in the 1970s to help ensure America's wealthiest families could not completely avoid paying taxes.
Among other things, the bill adopted language from Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648) to exclude mortgage debt forgiven in foreclosure or bankruptcy proceedings from taxable income as well as extending the tax deductions for mortgage insurance premiums. The standalone bill overwhelmingly passed the House last month.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
