If you lose your home through foreclosure or have restructured your mortgage loan, you could qualify for tax relief under the Mortgage Forgiveness Debt Relief Act. You can exclude up to $2 million of debt forgiven by or cancelled by a lender on your personal residence. You need to use Form 982 in order to claim this.
For further questions about Phoenix personal income tax accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.