Bill > S1464

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 forgiveness of mortgage debt on a principal residence. Specifically, it allows individuals to exclude up to $1,000,000 of forgiven debt from their taxable income, with married couples filing jointly eligible for an exclusion of up to $2,000,000. This relief applies to debt reduced through mortgage restructuring or forgiven due to foreclosure, but it will not apply if the debt discharge is for reasons unrelated to a decline in the home's value or the taxpayer's financial situation, such as for services rendered to the lender. The Commissioner of the Department of Revenue will be responsible for creating regulations to implement this provision.