does anyone believe that the bill to relieve paying tax on forgiven loans will pass thru senate,H/R did in oct

Question

Senate has had this bill since oct. and Bush said he'll sign it, but when?

Answer 1

HR 3648 passed house in October.
The senate version was passed in December.
The house and senate versions would need to be reconciled into agreement.

Then and only then would the White House sign it.

It's bad law, unfair to those of us not in debt and the White House has replaced it with a plan to freeze interest rates for those individuals who have a good payment history. Since part of the bill would change the way vacation property is taxed (if you move into it), the real estate lobby is fighting it as well.

Answer 2

I don't really think the bill is needed.

1) It only applies to mortgages. I don't think that it applies to credit cards, car loans or other personal loans.

2) If you are insolvent at the time that the debt cancelled, you don't have to claim the forgiven debt as income (See IRS Form 982). 99 times out of 100, if someone were to lose their only home, chances are they are insolvent.

Answer 3

I'm not aware of this bill. Could you please provide the number? (ie HR0360, or S7980) Thanks !