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Tax break for homeowners may be on the chopping block

Posted at 5:25 PM, Nov 07, 2012
and last updated 2012-11-07 17:59:15-05

(WTVR) - A tax break for struggling homeowners from paying thousands to the IRS may be up on the chopping block.

Congress has yet to extend the Mortgage Forgiveness Debt Relief Act of 2007.

The act saves homeowners from paying taxes on the portion of their mortgage that is forgiven in foreclosure, short sale or principal reduction.

If the tax break expires, more than 600,000 homeowners a year may be affected.