Bill > S1323

This bill proposes to amend Massachusetts General Laws, Chapter 62, Section 3, Part B, Paragraph (a) to provide tax relief for income resulting from the discharge of mortgage debt on a principal residence. Specifically, it allows for the exclusion of forgiven mortgage debt from taxable income, including debt reduced through mortgage restructuring or forgiven during a foreclosure, up to a limit of $1,000,000 for individuals and $2,000,000 for those married filing jointly. This exclusion is intended to help homeowners facing financial hardship or declining property values, but it will not apply if the debt forgiveness is due to services rendered to the lender or for reasons unrelated to the home's value or the taxpayer's financial situation. The Commissioner of the Department of Revenue will be responsible for creating regulations to implement this provision.