Mortgage Debt Tax Forgiveness Act of 2025

Hozzl · 2025-03-05T05:08:27Z

Explore the details of House Bill 917 Mortgage Debt Tax Forgiveness Act of 2025 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

3/5/2025, 5:08 AM

Summary of Bill HR 917

Bill 119 HR 917, also known as the Mortgage Forgiveness Tax Relief Act, aims to amend the Internal Revenue Code of 1986 to permanently exclude from gross income the discharge of qualified principal residence indebtedness. This means that individuals who have had their mortgage debt forgiven by a lender would not have to pay taxes on the forgiven amount.

The bill seeks to provide relief to homeowners who have faced financial hardship and had to negotiate with their lenders to forgive a portion of their mortgage debt. Currently, this exclusion is only temporary and has been extended multiple times since its initial enactment in 2007.

By making this exclusion permanent, the bill aims to provide certainty and stability to homeowners who may find themselves in a similar situation in the future. It also aims to prevent homeowners from facing a hefty tax bill on top of their financial struggles. Overall, Bill 119 HR 917 seeks to provide much-needed relief to homeowners facing financial hardship and ensure that they are not burdened with additional taxes on forgiven mortgage debt.

Congressional Summary of HR 917

Mortgage Debt Tax Forgiveness Act of 2025

This bill makes permanent the exclusion of the discharge of qualified principal residence indebtedness from gross income for federal tax purposes.

Under current law, a taxpayer may generally exclude from gross income up to $750,000 (or $375,000 if married but filing a separate federal tax return) from the discharge of indebtedness that is (1) incurred to purchase, build, or substantially improve a principal residence (or refinance such indebtedness); and (2) secured by the principal residence. The discharge must currently occur before January 1, 2026, and some limitations apply.

Read the Full Bill

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Current Status of Bill HR 917

Bill HR 917 is currently in the status of Bill Introduced since February 4, 2025. Bill HR 917 was introduced during Congress 119 and was introduced to the House on February 4, 2025. Bill HR 917's most recent activity was Referred to the House Committee on Ways and Means. as of February 4, 2025

Bipartisan Support of Bill HR 917

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 917

Primary Policy Focus

Alternate Title(s) of Bill HR 917

To amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income of discharge of qualified principal residence indebtedness.

Comments

Sponsors and Cosponsors of HR 917

Julia Brownley

CaliforniaDemocrat

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