Winter 2020 Newsletter
Qualified Principal Residence Indebtedness Exclusion
A December 20, 2019 Congressional action revived and extended an important protection for struggling homeowners—the Qualified Principal Residence Indebtedness (QPRI) exclusion.
This exclusion expired at the end of 2017, but now is extended to January 1, 2021 and applies retroactively to 2018 and 2019.
This is significant news for any homeowner now receiving a 1099 form from their mortgage lender for the 2019 tax year, anyone considering a mortgage loan modification in 2020, and even anyone who filed a tax return for the 2018 tax year where that return included income from home mortgage loan forgiveness.