PATH Act offers tax relief for struggling homeowners

A piece of tax legislation signed last week by President Barack Obama extends several expired tax provisions designed to support homeowners by providing tax relief from mortgage debt forgiveness and tax credits for real estate investors. On Dec. 18, Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015, which was part of a $1.15-trillion omnibus spending package to fund the federal government through October 2016. The appropriations extend 50 different tax credits, including many that offer support for homeowners, property investors and small businesses. The legislation is supported by the National Association of Realtors (NAR). f11photo / Shutterstock.com One provision protects homeowners with underwater mortgages from incurring a large tax bill on phantom income if they are able to work out a mortgage relief plan or conduct a short sale. This provision extends this assistance to homeowners through 2016. The bill also includes a permanen...