Uncle Sam

Owners Who Refinanced May Owe IRS

People who cashed out refinances, or had part of their mortgage debt forgiven when they sold their homes through short sales, will probably owe the IRS a big payback.In 2007, Congress passed the Mortgage Forgiveness Debt Act, but that doesn’t let everyone off the hook.Here are exceptions to the rule:• Anyone who did a cash-out refinance and spent the money on something not housing related, then got in...