Legislation
The Mortgage Forgiveness Debt Relief Act of 2007
1 See www.federalreserve.gov/releases/h15/data/Annual/H15_FF_O.txt. The 2007 annual effective FFR was 5.02%.
2 Bernanke, “The Housing Market and Subprime Lending,” speech to the 2007 International Monetary Conference, Cape Town, June 5, 2007.
3 Sec. 108(a)(1)(B). See Wood, “Subprime Lending Controversy Fuels Familiar Tax Issues,” 38 The Tax Adviser (December 2007): 714–16.
4 Regs. Sec. 1.1001-2 (Example 2) and Sec. 7701(g) exempt nonrecourse loans from the forgiveness of debt rules.
5 See Picha and Hiraldo, “Short Sale or Foreclosure of a Principal Residence,” 38 The Tax Adviser (September 2007): 507–9; and “Forced Home Sale Can Result in Income to the Borrower,” 204 Journal of Accountancy (September 2007): 88.
6 Joint Committee on Taxation, Estimated Revenue Effects of H.R. 3648, “The Mortgage Forgiveness Debt Relief Act of 2007” as Amended and Passed by the Senate on December 14, 2007 (JCX-118-07), December 18, 2007, www.house.gov/jct/x-118-07.pdf.
7 Sec. 1361.
8 Joint Committee on Taxation, Estimated Revenue Effects of H.R. 3648 (JCX-118-07).
