SENATE DOCKET, NO. 908        FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1323

 

The Commonwealth of Massachusetts

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PRESENTED BY:

Sal N. DiDomenico

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to the relief of mortgage debt.

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PETITION OF:

 

Name:

District/Address:

Sal N. DiDomenico

Middlesex and Suffolk

Christopher G. Fallon

33rd Middlesex

Daniel A. Wolf

Cape and Islands

John P. Fresolo

16th Worcester

Denise Andrews

2nd Franklin

Michael D. Brady

9th Plymouth

Benjamin Swan

11th Hampden

Michael O. Moore

Second Worcester


SENATE DOCKET, NO. 908        FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1323

By Mr. DiDomenico, a petition (accompanied by bill, Senate, No. 1323) of Sal N. DiDomenico, Christopher G. Fallon, Daniel A. Wolf, John P. Fresolo and other members of the General Court for legislation relative to the relief of mortgage debt.  Revenue.

 

The Commonwealth of Massachusetts

 

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In the Year Two Thousand Thirteen

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An Act relative to the relief of mortgage debt.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Paragraph (a) of part B of section 3 of chapter 62 of the General Laws, as appearing in the 2010 Official Edition, is hereby further amended by adding the following subparagraph:-

(17) Income attributable to the discharge of debt on a principal residence including debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, shall qualify for tax relief provided that no more than $1,000,000  of forgiven debt is eligible for this exclusion, except if married filing jointly, up to $2,000,000 may be excluded. The exclusion shall not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. The commissioner of the department of revenue shall promulgate regulations to effectuate this provision.