West Virginia Joins 41 States, Territories Urging Congress To Extend The Mortgage Forgiveness Tax Relief Act
CHARLESTON — Attorney General Patrick Morrisey today announced that West Virginia has joined 41 other states and territories in sending a letter today urging Congress to extend the Mortgage Forgiveness Tax Relief Act through at least 2014 in order to continue to help financially strapped homeowners.
“The Mortgage Forgiveness Tax Relief Act is important because it provides a tax exemption to distressed homeowners who have mortgage debt canceled or forgiven on their primary residence because of financial hardship,” Attorney General Morrisey said. “This Act is important for West Virginia families who may have struggled recovering from the housing crisis.”
The Act expires on Dec. 31, 2013. If it is not extended, distressed homeowners, even those who lose their home to foreclosure, will be forced to pay taxes as income on any mortgage debt that is canceled or forgiven by the mortgage holder. Last year, with the urging of state attorneys general, Congress extended this benefit into 2013.
“We’ve made significant headway and seen real results achieved for our citizens through the National Mortgage Settlement and other programs that forgive or cancel mortgage debts through modifications, waivers of foreclosure deficiencies, or short sales,” reads the NAAG letter. “But this assistance will be less meaningful if the very homeowners that receive mortgage debt relief are hit with tax bills they cannot afford.” The NAAG letter can be found at http://www.naag.org/sign-on_archive.php.
West Virginia was joined by attorneys general from 41 other states and territories, including: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, and Washington.