bostonbubble.com

[Kaidran]

http://money.cnn.com/2010/04/08/pf/taxes/taxes_mortgage_debt/index.htm?source=patrick.net

I thought this was pretty sweet for those that ATMed their house.

[admin]

While it may seem cruel at first blush to tax forgiven debt, I think it makes sense. Think about the scenario if the buyer had paid cash instead of having bought the house using a loan. The cash used to buy the house would have been (previously) taxed as income. The loaned money was not taxed as income, and that seems fair to me given that the money that would eventually be used to repay it would be taxed as income, so that avoids double taxation. However, if the debt is forgiven, then the borrower did indeed escape the income tax on the money that was originally received. Perhaps that tax should be forgiven as part of bankruptcy, my point is just that it's not just the tax man grasping at straws.

- admin

[Kaidran]

In a truly just world I would agree but right now I just want people out of the houses asap so that they can get back on the market and bring the prices down.

[balor123]

Me too. The bulk of current American voters or at least those in charge want the exact opposite. Funny, most buyers I know don't share my opinion. Somehow they're happy that prices haven't fallen more. They think they're actually getting a deal, instead of thinking that they're getting screwed because it could have been cheaper.