Forgiving the taxes due from debt reduction (short sales)

[Account Closed]

Bush's speech included a suggestion (?) that people who receive debt reduction in some cases will not owe tax on the debt forgiven.

Note that the IRS already allows this. It could mean that Bush is just restating what already exists or he could be indicating that more people will qualify for a tax free settlement.

In any event this could be good news for short sale investors.

John Corey