Debt cancellation income tax owed

People think that if you do a foreclosure, or a short sale, you will owe income taxes.

The idea is that if you borrow money, and the loan is canceled or forgiven, what was once non-taxable (the loan) becomes taxable.

There are two items you need to be aware of.

Item 1 is that the law read that if you owe more than you have, you are technically known as "insolvent" and you do not owe income taxes on debt cancellation income if you are insolvent. Most people's biggest asset has been their house. And their biggest liability has been their mortgage.

So if they owe more on their house than it's worth, they are technically insolvent. They have a negative net worth. (Retirement funds often do not count in these net worth calculations.)

Item 2 is that President Bush just signed legislation clarifying that you do not have debt cancellation income in any event in this situation. You no longer have to be technically insolvent.

The Mortgage Relief Formula home study course explains this in detail as well as strategies to…

• Get out of debt while raising your FICO score
• Sell your house in nine days from today
• Negotiate lower payments with your mortgage company
• Buy a house with no money down

And if you buy now, pay only for shipping and handling until you've examined the Mortgage Relief Formula and decided to  keep it.

And you will participate in next month's live conference call with an absolute expert in the 9 day house selling method. Exclusively for owners of Mortgage Relief Formula.

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