Bill

Bill > H3337


MA H3337

Relative to the relief of mortgage debt


summary

Introduced
01/23/2017
In Committee
05/04/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

190th General Court

Bill Summary

Relative to treatment of debt on principal residences for tax purposes. Revenue.

AI Summary

This bill allows for the exclusion of up to $2 million ($1 million for married filing separately) of income attributable to the discharge of debt on a principal residence, including through mortgage restructuring or foreclosure. The exclusion only applies to "acquisition indebtedness" as defined in the Internal Revenue Code, and the excluded amount must be used to reduce the Massachusetts basis of the principal residence. The exclusion does not apply if the discharge is due to services performed for the lender or other factors not related to the property's value or the taxpayer's financial condition. The bill applies to discharges of indebtedness on or after January 1, 2013, and the commissioner is required to promulgate regulations to effectuate the provision.

Committee Categories

Budget and Finance

Sponsors (21)

Last Action

No further action taken (on 01/01/2019)

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