New Tax Forms Will Help Homeowners
A new law will benefit cash-strapped homeowners whose mortgage debt was forgiven, in part or in whole, during 2007. Taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million (the limit is $1 million for a married person filing a separate return).
Also, a new deduction will help some people who purchased and paid for mortgage insurance during 2007. However, the deduction begins to phase out once adjusted gross income exceeds $100,000 (or $50,000 for married people filing separately).
The basic standard deduction for 2007 rose to $10,700 for joint filers from $10,300 for the prior year. For most singles, it’s $5,350 for 2007, up from $5,150. There are additional amounts for those who are 65 or older, or who are blind.
search for : mortgage insurance
