Bankruptcy Taxation Committee

ABI Committee News

Homeowners May Exclude Discharged Mortgage Indebtedness Under the Mortgage Forgiveness Debt Relief Act of 2007

Written by:
Eric L. Pruitt Baker, Donelson, Bearman, Caldwell & Berkowitz, PC; Birmingham, Ala.
and
Matthew M. Cahill Cumberland School of Law; Birmingham, Ala.

The treatment of discharged mortgage indebtedness under the Internal Revenue Code (IRC) changed significantly with the enactment of the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA). The MFDRA, by adding subsections (a)(1)(E) and (h) to IRC §108, allows the exclusion from gross income of discharged qualified principal residence indebtedness. The Internal Revenue Service ("IRS") has also revised Form 982 to facilitate the change.

Read the full article.


ABI's Annual Spring Meeting: Committee Educational Session

ABI's 26th Annual Spring Meeting, the networking and CLE event of 2008, will be held April 3-6 at Washington, D.C.'s Renaissance Hotel in the Nation's Capital! Join us during cherry blossom season for exciting and informative sessions, including a luncheon keynote by Supreme Court Justice Samuel A. Alito, Jr.

The committee will meet on Saturday, April 5, 2008 4:00-5:30 p.m. to discuss, “When Good Loans Go Bad, Tax Issues for Corporations Holding or Owning Troubled Debt.”

Speakers include: Candace Ridgway, Jones Day, Washington, D.C. and Jack Williams, Georgia State University / BDO Seidman LLP, Atlanta - ABI Scholar in Residence