Mortgage Forgiveness Debt Relief Act of 2007

Bill: 110-hr-3648
Sponsor: Rep. Rangel, Charles B. [D-NY-15]
Introduced: 2007-09-25 in the House
Policy area: Taxation
Subjects: Bankruptcy
Commerce
Cooperative housing
Corporation taxes
Debt
Education
Emergency Management
Emergency medicine
Families
Finance and Financial Sector
Fire fighters
Government Operations and Politics
Health
Higher education
Home ownership
Housing and Community Development
Housing finance
Income tax
Insurance premiums
Loan defaults
Local taxation
Low-income housing
Mortgage guaranty insurance
Mortgages
Partnerships
Single-parent families
Small business
Social Welfare
State taxation
Students
Tax deductions
Tax exclusion
Tax penalties
Tax rates
Tax rebates
Tax returns
Volunteer workers
Widowers
Widows
Women

Summary:
action_date: 2007-09-25
text: 
Amends the Internal Revenue Code to: (1) exclude from gross income amounts attributable to a discharge of mortgage indebtedness on a principal residence; (2) extend through 2014 the tax deduction for mortgage insurance premiums; (3) expand the definition of cooperative housing corporation for purposes of the tax deduction for payments to such corporations; and (4) limit the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain allocated to a nonqualified use of such residence.

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase (from 114.75% to 116.50%) in the third quarter of 2012 the estimated tax rate for corporations with assets of not less than $1 billion.

action_date: 2007-10-01
text: 
Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of mortgage indebtedness on a principal residence. Reduces the basis of such principal residence by the amount excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.

Extends through 2014 the tax deduction for mortgage insurance premiums.

Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders. 

Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.

action_date: 2007-10-04
text: 
Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and who are insolvent.

Extends through 2014 the tax deduction for mortgage insurance premiums.

Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders. 

Limits the exclusion from gross income of gain from the sale of a principal residence by denying an exclusion of the gain that is allocable to a nonqualified use of such residence (i.e., use other than as a principal residence).

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase to 116.75% the estimated tax rate in the third quarter of 2012 for corporations with assets of not less than $1 billion.

action_date: 2007-12-14
text: 
Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge, prior to January 1, 2010, of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and taxpayers who are insolvent. 

Extends through 2010 the tax deduction for mortgage insurance premiums. 

Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders. 

Allows members of a qualified volunteer emergency response organization (i.e., an organization that provides firefighting and emergency medical services) an exclusion from gross income for state and local tax benefits and for certain payments for services. Terminates such exclusion after 2010.

Allows certain full-time students who are single parents and their children to live in housing units eligible for the low-income housing tax credit provided that their children are not dependents of another individual (other than a parent of such children).

Allows a surviving spouse to exclude from gross income up to $500,000 of the gain from the sale or exchange of a principal residence owned jointly with a deceased spouse if the sale or exchange occurs within two years of the death of the spouse and other ownership and use requirements have been met. 

Increases the penalty for failure to file a partnership tax return and extends from five to 12 the number of months in which such penalty may be imposed. Limits disclosure of tax return information that includes individual taxpayer identify information.

Imposes an additional penalty on S corporations for failure to file required tax returns.

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase the estimated tax payment due in the third quarter of 2012 for corporations with assets of at least $1 billion.

action_date: 2007-12-20
text: 

(This measure has not been amended since it was passed by the Senate on December 14, 2007. The summary of that version is repeated here.)

Mortgage Forgiveness Debt Relief Act of 2007 - Amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge, prior to January 1, 2010, of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and taxpayers who are insolvent. 

Extends through 2010 the tax deduction for mortgage insurance premiums. 

Sets forth alternative tests for qualifying as a cooperative housing corporation for purposes of the tax deduction for payments to such corporations. Qualifies a corporation if: (1) 80% or more of the total square footage of the corporation's property is used or available for use by its tenant-stockholders for residential purposes, or (2) 90% of the corporation's expenditures are for the acquisition, construction, management, maintenance, or care of its property for the benefit of the tenant-stockholders. 

Allows members of a qualified volunteer emergency response organization (i.e., an organization that provides firefighting and emergency medical services) an exclusion from gross income for state and local tax benefits and for certain payments for services. Terminates such exclusion after 2010.

Allows certain full-time students who are single parents and their children to live in housing units eligible for the low-income housing tax credit provided that their children are not dependents of another individual (other than a parent of such children).

Allows a surviving spouse to exclude from gross income up to $500,000 of the gain from the sale or exchange of a principal residence owned jointly with a deceased spouse if the sale or exchange occurs within two years of the death of the spouse and other ownership and use requirements have been met. 

Increases the penalty for failure to file a partnership tax return and extends from five to 12 the number of months in which such penalty may be imposed. Limits disclosure of tax return information that includes individual taxpayer identify information.

Imposes an additional penalty on S corporations for failure to file required tax returns.

Amends the Tax Increase Prevention and Reconciliation Act of 2005 to increase the estimated tax payment due in the third quarter of 2012 for corporations with assets of at least $1 billion.


Legislative actions:
action_date: 2007-12-20
text: Became Public Law No: 110-142.
action_date: 2007-12-20
text: Became Public Law No: 110-142.
action_date: 2007-12-20
text: Signed by President.
action_date: 2007-12-20
text: Signed by President.
action_date: 2007-12-19
text: Presented to President.
action_date: 2007-12-19
text: Presented to President.
action_date: 2007-12-18
text: Cleared for White House.
action_date: 2007-12-18
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-12-18
text: On motion that the House suspend the rules and agree to the Senate amendment Agreed to by voice vote. (text as House agreed to Senate amendment: CR H16768-16770)
action_date: 2007-12-18
text: Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendment Agreed to by voice vote.(text as House agreed to Senate amendment: CR H16768-16770)
action_date: 2007-12-18
text: DEBATE - The House proceeded with forty minutes of debate on the motion to suspend the rules and agree to the Senate amendment to H.R.3648.
action_date: 2007-12-18
text: Mrs. Jones (OH) moved that the House suspend the rules and agree to the Senate amendment. (consideration: CR H16768-16772)
action_date: 2007-12-14
text: Message on Senate action sent to the House.
action_date: 2007-12-14
text: Passed Senate with an amendment by Unanimous Consent.
action_date: 2007-12-14
text: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
action_date: 2007-12-14
text: Measure laid before Senate by unanimous consent. (consideration: CR S15642-15643)
action_date: 2007-12-14
text: Senate Committee on Finance discharged by Unanimous Consent.
action_date: 2007-12-14
text: Senate Committee on Finance discharged by Unanimous Consent.
action_date: 2007-10-04
text: Received in the Senate and Read twice and referred to the Committee on Finance.
action_date: 2007-10-04
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-10-04
text: On passage Passed by recorded vote: 386 - 27 (Roll No. 948). (text: CR H11288-11289)
action_date: 2007-10-04
text: Passed/agreed to in House: On passage Passed by recorded vote: 386 - 27 (Roll No. 948).(text: CR H11288-11289)
action_date: 2007-10-04
text: On motion to recommit with instructions Failed by the Yeas and Nays: 201 - 212, 1 Present (Roll no. 947). (consideration: CR H11297)
action_date: 2007-10-04
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H11296)
action_date: 2007-10-04
text: DEBATE - The House proceeded with ten minutes of debate on the Cantor motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment striking sections 5 and 6 from the bill.
action_date: 2007-10-04
text: Mr. Cantor moved to recommit with instructions to Ways and Means. (consideration: CR H11296-11297; text: CR H11296)
action_date: 2007-10-04
text: The previous question was ordered pursuant to the rule. (consideration: CR H11296)
action_date: 2007-10-04
text: DEBATE - The House proceeded with one hour of debate on H.R. 3648.
action_date: 2007-10-04
text: Rule provides for consideration of H.R. 3648 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in the report of the Committee on Rules accompanying this resolution, shall be considered as adopted.
action_date: 2007-10-04
text: Considered under the provisions of rule H. Res. 703. (consideration: CR H11287-11298; text of measure as introduced: CR H11287-11288)
action_date: 2007-10-04
text: Rule H. Res. 703 passed House.
action_date: 2007-10-02
text: Rules Committee Resolution H. Res. 703 Reported to House. Rule provides for consideration of H.R. 3648 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill, modified by the amendment printed in the report of the Committee on Rules accompanying this resolution, shall be considered as adopted.
action_date: 2007-10-01
text: Placed on the Union Calendar, Calendar No. 220.
action_date: 2007-10-01
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-356.
action_date: 2007-10-01
text: Reported (Amended) by the Committee on Ways and Means. H. Rept. 110-356.
action_date: 2007-09-26
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2007-09-26
text: Committee Consideration and Mark-up Session Held.
action_date: 2007-09-25
text: Referred to the House Committee on Ways and Means.
action_date: 2007-09-25
text: Introduced in House
action_date: 2007-09-25
text: Introduced in House

Enacted as: number: 110-142