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119-hr-917119th CongressWALLET

Mortgage Debt Tax Forgiveness Act of 2025

Sponsored By: Representative Brownley, Julia [D-CA-26]

Introduced

Summary

Permanent exclusion for forgiven mortgage debt. This bill would make permanent the existing rule that keeps discharged qualified principal residence indebtedness out of gross income for debt forgiven after December 31, 2025. It preserves current eligibility rules and is not retroactive.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Permanent tax relief for forgiven mortgage debt

If enacted, homeowners could exclude forgiven mortgage debt on a main home from taxable income. This would apply to qualified principal residence debt discharged after December 31, 2025. It would not apply to debt forgiven before January 1, 2026. The bill would make this exclusion permanent under current rules.

Sponsors & CoSponsors

Sponsor

Brownley, Julia [D-CA-26]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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