This is big folks….(and a bit dense so bear with me)
The good news is the big risk of tax liability has been eliminated with the tax extender bill that was signed into law today!
EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS
INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE
INDEBTEDNESS.
(c) EFFECTIVE DATES.—
(1) EXTENSION.—The amendment made by subsection (a)
shall apply to discharges of indebtedness after December 31,
2014.
(2) MODIFICATION.—The amendment made by subsection
(b) shall apply to discharges of indebtedness after December
31, 2015.
SEC. 152. EXTENSION OF MORTGAGE INSURANCE PREMIUMS TREATED
AS QUALIFIED RESIDENCE INTEREST.
(a) IN GENERAL.—Subclause (I) of section 163(h)(3)(E)(iv) is
amended by striking ‘‘December 31, 2014’’ and inserting ‘‘December
31, 2016’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to amounts paid or accrued after December 31, 2014.
SEC. 153. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR QUALIFIED
TUITION AND RELATED EXPENSES.
(a) IN GENERAL.—Section 222(e) is amended by striking
‘‘December 31, 2014’’ and inserting ‘‘December 31, 2016’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2014.
