Life Events


Back

Mortgage Debt Forgiven

Mortgage Debt forgiven

Mortgage debt forgiveness is generally a taxable event and must be reported on your tax return. The income forgiven by the lender is taxable unless the foreclosure, or short sale, occurred after 2006 and before 2017.  For more information, see Discharges of Qualified Principal Residence Indebtedness in IRS Publication 523.