Install
Mortgage Debt Tax Forgiveness Act of 2025
To amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income of discharge of qualified principal residence indebtedness.
- Introduced
- Committee
- Passed House
- Passed Senate
- To President
- Became law
Summary
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.
Summary by the Congressional Research Service, Library of Congress.
Actions
- Feb 4, 2025 Referred to the House Committee on Ways and Means.
- Feb 4, 2025 Introduced in House
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