Hartford (AP) — Connecticut officials are calling for the need to help distressed homeowners who face being taxed on so-called income from a mortgage restructuring, foreclosure or short sale of a home.
In December, a provision expired which exempted those funds from being taxed by the federal government as additional income.
U.S. Rep. Joe Courtney and Connecticut Attorney General George Jepsen are calling on Congress to extend the provision, arguing that the money should not be considered income because the seller never sees it.
Both are holding a news conference on Tuesday at the Legislative Office Building to discuss the issue. Debra Chamberlain, president of the Connecticut Association of REALTORS, is also expected to be on hand for the event.