Attorney General Pam Bondi Praises Parts of Fiscal Cliff Compromise

Florida Attorney General Pam Bondi on Wednesday praised at least one aspect of the U.S. Congress's "fiscal cliff" compromise: aone-year tax relief extension for borrowers who have mortgagedebt canceled or forgiven due to financial hardship.

The one-year tax relief extension for Floridas distressed homeowners is asubstantial victory for homeowners who have mortgage debt forgiven," Bondi said in a statement. "Thisextension will help struggling homeowners take full advantage of theassistance offered them by the national mortgage settlement and otherforeclosure relief programs. We need to continue to do everything we can tohelp Floridians who are doing the best they can to pay their bills and stayin their homes."

Under the federal Mortgage Forgiveness Debt Relief Act of 2007, mortgagedebt that is forgiven after a foreclosure or short sale or through a loanmodification provided to a homeowner in financial hardship may be excludedfrom a taxpayers calculation of taxable income. In November Bondi joined 40 other state attorneys general in sending a letter to Congress urging extension of the tax relief.