Matt from Queens

The End of the Credit Crisis

Some tax lawyer you are--homeowners who have a portion (or all) of the mortgage debt written down will not have to pay tax (up to $2M)

IR-2008-17, Feb. 12, 2008

WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on this Web site.

“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”

U.S. Session Wrap: Meredith Whitney Does It Again

I think you are missing the point here--the LFB seems to be supplying a lot of economic info and they also made an important point.

Everyone is consumed with the dollar's connection to oil, but they;ve pointed out that the dollar was able to decline even after oil fell because the financial sector weighed on the overall indexes.

Much of there info seems to be taken right from the source, and they break it down in a way that paints a total picture of the market. I think it's a very handy resource.