Plain English
GovGreed Synthesis ·
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.
Market Impact Map
Action Timeline
2025-02-04
Referred to the House Committee on Ways and Means.
2025-02-04
Introduced in House
2025-02-04
Introduced in House
Full Bill Text
119 HR 917 IH: Mortgage Debt Tax Forgiveness Act of 2025 U.S. House of Representatives 2025-02-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 917 IN THE HOUSE OF REPRESENTATIVES February 4, 2025 Ms. Brownley introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to make permanent the exclusion from gross income of discharge of qualified principal residence indebtedness. 1. Short title This Act may be cited as the Mortgage Debt Tax Forgiveness Act of 2025 . 2. Permanent extension of exclusion from gross income of discharge of qualified principal residence indebtedness (a) In general Section 108(a)(1)(E) of the Internal Revenue Code of 1986 is amended by striking which is discharged and all that follows and inserting a period. (b) Effective date The amendment made by this section shall apply to indebtedness discharged after December 31, 2025.
Loading intelligence layer…