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Permanent Tax Exemption for Forgiven Mortgage Debt

This act aims to permanently exclude forgiven mortgage debt from taxable income, meaning citizens whose home loan debt is partially cancelled by a bank will not have to pay taxes on that amount. This change could provide financial relief to individuals facing hardship whose mortgage debt is reduced.
Key points
Individuals whose principal residence mortgage debt is forgiven will not pay taxes on that amount.
This change is permanent and applies to debts discharged after December 31, 2025.
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Status: Introduced
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Additional Information
Print number: 119_HR_917
Sponsor: Rep. Brownley, Julia [D-CA-26]
Process start date: 2025-02-04
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Mortgage Debt Tax Forgiveness Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_917.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-02-04.

What are the main provisions?

Key points include:

  • Individuals whose principal residence mortgage debt is forgiven will not pay taxes on that amount.
  • This change is permanent and applies to debts discharged after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Brownley, Julia [D-CA-26].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Real Estate