Congress has yet to decide whether to renew that and other so-called tax extenders
By Laura Kusisto | The Wall Street Journal
Last-minute negotiations in Washington have left real-estate agents and sellers nervous about the possibility that distressed homeowners could receive an unwelcome tax hit.
Congress has yet to reach an agreement to extend a tax break that forgives taxes on owners who sell their home for less the remaining mortgage balance in what is known as a short sale. The provision, which was passed in 2007 under President George W. Bush, would forgive an estimated $5.1 billion of taxes for homeowners who have been battered by the foreclosure crisis if it is extended for two years.
