Mortgages that got a debt relief won’t get hit with tax rate increase.

Extension of Mortgage Forgiveness Debt Relief Act will prevent mortgage modification or short sale as being treated as taxable income.

Till now Ohio had in writing that home owners that saved money from debt relief, a short sale, or loan modification on their mortgage would have to pay for it dearly on their taxes. Save one spot and pay in another right?

The Mortgage Forgiveness Tax Relief Act, cosponsored by Brown, would extend relief originally passed in the Mortgage Forgiveness Debt Relief Act of 2007. The legislation allows homeowners to exclude from annual, reportable income the discharge of mortgage debt owed on their homes. Individuals who receive assistance through the Home Affordable Modification Program (HAMP), Ohio’s Save the Dream Program, or other private agreements with financial institutions to save their home from foreclosure may now face additional tax consequences if the law is not extended.

you can read more here, but there isn't a point. http://www.norwalkreflector.com/article/4337346