Courtney, Jepsen Call On Congress To Extend Tax Break For Distressed Homeowners
U.S. Rep. Joe Courtney and state Attorney General George Jepsen called on Congress Tuesday to extend a recently-expired tax break for underwater homeowners to help ensure the continued recovery of the housing market.Courtney and Jepsen urged Congressional action on the expired tax provision during a Tuesday morning press conference in Hartford.
The tax policy was passed in 2007 and prevented forgiven mortgage debt from being counted as income for tax purposes. The expiration of the provision will hit troubled homeowners whose mortgages have been modified or whose homes have been sold or foreclosed upon at a rate lower than what they owe. Without the provision, those homeowners have to pay taxes on the difference, which the Internal Revenue Service considers to be income.