Tax Cuts and Jobs Act - Some Unintended Results

[BevoJoe]

Good article by Weaver LLP, regarding errors and corrections in TCJA need to be addressed by Congress:

Congress Lets Tax Relief Provisions Expire, Fails to Fix Tax Reform Glitches | Weaver | Assurance, Tax & Advisory Firm

 

[nashhorn]

Wait, selling your home is no longer a tax exclusion? Holy crap, did I read that right?

 

[mchammer]

Wait, selling your home is no longer a tax exclusion? Holy crap, did I read that right?

No, you read that wrong. It is housing DEBT written off your mortgage by a bank or whomever is no longer tax free. Generally any debt that is written off is counted as income. After the housing crisis, I think this tax break was added to the tax code. With the crisis over, it no longer needs to be included.

 

[nashhorn]

Whew! Thanks Mc. I just read it as debt - as in mortgage, and that being paid off. Scared me for sure.

 

[BevoJoe]

No, you read that wrong. It is housing DEBT written off your mortgage by a bank or whomever is no longer tax free. Generally any debt that is written off is counted as income. After the housing crisis, I think this tax break was added to the tax code. With the crisis over, it no longer needs to be included.

Good explanation! I agree.

 

[Mr. Deez]

Even if I like the tax relief, it's a sloppily-written piece of legislation.