Bill > S1927

This bill aims to provide relief for individuals who have had their mortgage debt discharged, whether through mortgage restructuring, foreclosure, or other means. It allows for the exclusion of up to $2 million ($1 million for married filing separately) of this discharged debt from their gross income for tax purposes, as long as the debt meets the definition of "acquisition indebtedness" under the federal tax code. The bill also requires that the excluded amount be used to reduce the taxpayer's Massachusetts basis in their principal residence. The bill applies to discharges of indebtedness on or after January 1, 2013, and the commissioner is tasked with promulgating regulations to implement this provision.

Budget and Finance

https://malegislature.gov/Bills/192/S1927