Bill > H2608

This bill proposes to amend Massachusetts tax law to exclude certain financial outcomes from being considered taxable income. Specifically, it states that if a property with a mortgage is sold in a "short sale" (where the sale price is less than the outstanding mortgage balance), any resulting "deficiency" (the difference between the mortgage owed and the sale price) will not be treated as income for tax purposes. This means that neither the homeowner (the "mortgagor") nor any other tax category will be subject to taxation on this shortfall, regardless of any other existing laws.