There are many reliefs and deductions you can claim and there is plenty of scope for constructive capital gains tax planning.

It is my understanding that when you do a short sale right now, lets say you owe 200K and you sell it for 150k the difference in what you owe and the sales price (50K)is mortgage relief, which I understand at the present time is not being taxed.

If a borrower receives debt relief they owe taxes on the amount forgiven until they agree something different with the IRS.John Corey

In the short run, the rate cut will not give much relief to the housing market since most mortgage rates are tied to the 10 yr bond.

The Internal Revenue Service announced tax relief for Southern California taxpayers in the Presidential Disaster Area struck by severe wildfires beginning on Oct. 21, 2007.

President Bush signed into law H.R. 3648, The Mortgage Debt Relief Act of 2007, and dramatically changed the lives of homeowners across the country who are facing foreclosure, considering a short sale, negotiating a loan workout, or have done any of these since January 1, 2007.

The recent Program announced in Washington is more "smoke and mirrors" than actual relief for the sub-prime borrower.

There IS a way to get relief.

AnthonyC, What a relief to get things taken care of!

We just spent weeks trying to diagnose why a new hot water Pressure Relief Value leaked over time.