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Mortgage Debt Forgiven

Mortgage Debt forgiven

Mortgage debt forgiveness: You can exclude from gross income any discharge of qualified principal residence indebtedness. This exclusion applies to discharges made after 2006 and before 2014. Additionally, the basis of the principal residence (main home) must be reduced (but not below zero) by the amount excluded from gross income. For more information, see Discharges of qualified principal residence indebtedness in IRS Publication 523.