Bill > HR3890

This bill, the Mortgage Debt Tax Forgiveness Act of 2023, aims to make permanent the exclusion from gross income of the discharge of qualified principal residence indebtedness, which refers to the forgiveness of mortgage debt on a person's primary home. Specifically, the bill amends the Internal Revenue Code of 1986 to remove the provision that limited this exclusion to debt discharged before January 1, 2026, making the exclusion a permanent feature of the tax code. This change will provide ongoing tax relief to homeowners who have had their mortgage debt forgiven, which can occur in situations such as foreclosure or short sales.