1.0CLP Bloghttps://clpblog.citizen.orgBrian Wolfmanrich600338<blockquote class="wp-embedded-content" data-secret="hTgrimjIMb"><a href="https://clpblog.citizen.org/forgiven-mortgage-debt-may-increase-homeowners-income-tax-liability-starting-next-year/">Forgiven Mortgage Debt May Increase Homeowners’ Income Tax Liability Starting Next Year</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://clpblog.citizen.org/forgiven-mortgage-debt-may-increase-homeowners-income-tax-liability-starting-next-year/embed/#?secret=hTgrimjIMb" width="600" height="338" title="“Forgiven Mortgage Debt May Increase Homeowners’ Income Tax Liability Starting Next Year” — CLP Blog" data-secret="hTgrimjIMb" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); /* ]]> */ </script> The cancellation of indebtedness generally produces income for federal and state income tax purposes. But as LA Times writer Jim Puzzanghera explains, "in 2007, Congress enacted the Mortgage Forgiveness Debt Relief Act to give struggling homeowners a break. If the debt is forgiven because of a drop in a home's value or a decline in [...]