Home Depreciation Tax Credit???

[grlarson1955]

As often happens, I get something like this... My friend got their taxes done at Jack in the Block and they say there is.. . they go on to talk about some odd tax credit that doesn't exist, but I still ahve ot research. This one I can't find anything on. Maybe someone here has heard about it (if it exists). Under the recent recovery tax adjustments, supposedly there is a new credit available to homeowners who sell a house at a loss?

[ChEAr$]

There was

As often happens, I get something like this... My friend got their taxes done at Jack in the Block and they say there is.. . they go on to talk about some odd tax credit that doesn't exist, but I still ahve ot research. This one I can't find anything on. Maybe someone here has heard about it (if it exists). Under the recent recovery tax adjustments, supposedly there is a new credit available to homeowners who sell a house at a loss?

a move in congress some years ago to allow this, but it fizzled.

and just as well in my opinion.

[David1980]

supposedly there is a new credit available to homeowners who sell a house at a loss?

What they might be talking about here is the exclusion of cancellation of debt income on principal residence indebtedness. After all, many that sell a house at a loss end up getting the remainder of their mortgage cancelled. That is income that would have been includable and taxed if not for the exclusion.

[grlarson1955]

Exclusion of Debt Cancellation Income

As I understand it, this exclusion only applies to Midwest Disaster area. has this been expanded?

[Lion]

$2,000,000

$2,000,000 is pretty expansive.

[oceanlovin'ea]

I had my first one of these cancellation of debt on a mortgage loan today. It was nice to be able to do something to help someone who has had a hard time lately.

Worked like a charm

Linda

[taxea]

Have them contact their preparer and ask for the cite so she can read it for herself. Are you going to send her a bill? taxea