Get the free MORTGAGE FORGIVENESS DEBT RELIEF ACT OF 2007 (eff

MORTGAGE FORGIVENESS DEBT RELIEF ACT OF 2007 (eff. 12/20/07). ABA Tax Section, Pro Bono Committee, Saturday, May 8, 2008, 9:00a.m. By Frances D. Sheeny, Esq. Law Office of Frances D. Sheeny 1367 Lyons

How to fill out mortgage forgiveness debt relief

How to fill out mortgage forgiveness debt relief:

1. Gather all necessary documentation: You will need to collect important documents such as your mortgage statement, tax returns, and any financial statements that provide proof of your income and expenses.
2. Determine your eligibility: Check if you meet the criteria for mortgage forgiveness debt relief. This program is generally available for individuals who have had their mortgage debt reduced or forgiven by their lender due to financial hardship.
3. Complete the appropriate forms: To apply for mortgage forgiveness debt relief, you typically need to fill out Form 982, which is the Reduction of Tax Attributes Due to Discharge of Indebtedness. Make sure to accurately report any forgiven debt on this form.
4. Calculate the amount of forgiven debt: Consult with your lender or mortgage servicer to determine the exact amount of debt forgiven. This information is essential for completing the forms accurately.
5. File your taxes: Include the completed Form 982 along with your tax return for the relevant tax year. Be sure to follow the instructions provided by the IRS for reporting forgiven mortgage debt.
6. Seek professional advice if needed: If you find the process confusing or complex, it may be beneficial to consult with a tax professional or financial advisor who can guide you through the steps and ensure you properly fill out the necessary paperwork.

Who needs mortgage forgiveness debt relief:

1. Homeowners who have had their home loan debt reduced or forgiven by their lender due to financial hardship may qualify for mortgage forgiveness debt relief.
2. Individuals who experienced a foreclosure, short sale, or deed in lieu of foreclosure may also be eligible for this program if their lender forgave a portion of their mortgage debt.
3. It is important to note that mortgage forgiveness debt relief is specific to certain situations, such as when a borrower's debt has been discharged or forgiven by their lender. Therefore, individuals who haven't faced these circumstances may not require this form of relief.

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What is mortgage forgiveness debt relief?

Mortgage forgiveness debt relief is a tax relief provision that allows individuals to exclude certain cancelled mortgage debt from their taxable income.

Who is required to file mortgage forgiveness debt relief?

Individuals who have had their mortgage debt forgiven by a lender are required to file mortgage forgiveness debt relief.

How to fill out mortgage forgiveness debt relief?

To fill out mortgage forgiveness debt relief, individuals must use Form 982 and include the necessary information about the cancelled debt.

What is the purpose of mortgage forgiveness debt relief?

The purpose of mortgage forgiveness debt relief is to help individuals who have had their mortgage debt cancelled avoid paying taxes on the forgiven amount.

What information must be reported on mortgage forgiveness debt relief?

The information that must be reported on mortgage forgiveness debt relief includes the amount of the cancelled debt, the reason for cancellation, and any applicable exclusions or exceptions.