No more "phantom tax."

REALTORS applaud President Bush for signing the Mortgage Forgiveness Debt Relief Act on Dec. 20, which will ensure that any debt forgiven on disposition of a principal residence will not be taxed. The National Association of REALTORS has been working for the past nine years to repeal the “phantom tax” law that forces individuals to pay income tax when a portion of their mortgage loan is forgiven after a short sale or as part of a foreclosure.