In article ,
Douglas Johnson wrote:

" wrote:

No, home loans that are discharged are not taxable income. Other discharged
loans *are*.

http://illinoislawnews.net/?p=367

There is something wrong here. Forgiveness on mortgage loans is not
taxable.

You're right, but it was a fairly recent change in the law -- in the last
couple
of years. -- Doug

And, IIRC, it will sunset around 2017 or so.

--
"Even I realized that money was to politicians what the ecalyptus tree is to koala bears: food, water, shelter and something to crap on."
---PJ O'Rourke