HOUSE DOCKET, NO. 3219        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2607

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Elizabeth A. Malia

_________________

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.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Elizabeth A. Malia

11th Suffolk

1/16/2015

Gloria L. Fox

7th Suffolk

8/12/2019

John H. Rogers

12th Norfolk

8/12/2019

Stephen L. DiNatale

3rd Worcester

8/12/2019

Michelle M. DuBois

10th Plymouth

8/12/2019

Michael D. Brady

Second Plymouth and Bristol

8/12/2019

James R. Miceli

19th Middlesex

8/12/2019

Benjamin Swan

11th Hampden

8/12/2019

Jay R. Kaufman

15th Middlesex

8/12/2019

James J. O'Day

14th Worcester

8/12/2019

Angelo M. Scaccia

14th Suffolk

8/12/2019


HOUSE DOCKET, NO. 3219        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2607

By Ms. Malia of Boston, a petition (accompanied by bill, House, No. 2607) of Elizabeth A. Malia and others relative to providing a tax deduction for income attributable to the discharge of debt on principal residences, including debt reduced through mortgage restructuring.  Revenue.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Eighty-Ninth General Court
(2015-2016)

_______________

 

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:
 

SECTION 1. Paragraph (a) of part B of section 3 of chapter 62 of the General Laws, as appearing in the 2012 official edition, is hereby 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 subject to the following conditions and limitations.

(a) 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.

(b) Tax relief shall only apply to “acquisition indebtedness” as defined in section 163 (h) (3) (B) of the Code.

(c) “Principal residence” shall have the same meaning as section 121 of the code.

(d) Tax relief 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.

SECTION 2. This Act shall apply to discharges of indebtedness on or after January 1, 2013.

SECTION 3. The commissioner of the department of revenue shall promulgate regulations to effectuate this provision.