Bill

Bill > H2550


MA H2550

MA H2550
Relieving mortgage debt


summary

Introduced
01/22/2019
In Committee
03/04/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

191st General Court

Bill Summary

Relative to treatment of debt on principal residences for tax purposes. Revenue.

AI Summary

This bill aims to provide tax relief for individuals who have had their mortgage debt on their principal residence forgiven or reduced through mortgage restructuring or foreclosure. Specifically, it excludes from taxable income up to $2 million ($1 million for married filing separately) of forgiven mortgage debt, as long as the debt qualifies as "acquisition indebtedness" under the federal tax code. The excluded amount would be used to reduce the taxpayer's Massachusetts basis in the principal residence. The bill applies to discharges of indebtedness on or after January 1, 2013 and requires the state tax commissioner to promulgate regulations to implement this provision.

Committee Categories

Budget and Finance

Sponsors (18)

Last Action

Bill reported favorably by committee and referred to the committee on House Ways and Means (on 03/04/2020)

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