Bill > H3337

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.

Budget and Finance

https://malegislature.gov/Bills/190/H3337