New for Homeowner"s:

Three new laws went into effect that will help homeowners.

First:  Debt Foregiveness----under the new rules for debt foregiveness the debt must have been discharged by the lender in the years 2007, 2008 and 2009.  The debt cap is $ 2,000,000.  The exclusion can be used only if the loan was taken to acquire, build or improve a principal residence.  (Vacation homes, second homes and investment properties are not included in the debt foregiveness program). 

Second:  Mortgage Insurance.  The new law extends the mortgage insurance deduction through the year 2010.  Loans that this apply to must have been originated after December 31, 2006 and before January 1, 2011.

Third tax break:  Capital gains on the sale of a principal residence when a person's spouse dies.  The new law allows the surviving spouse now to claim the $ 500,000 (if married) exclusion if the home is sold within two years of teh spouse's death.  Previously the surviving spouse had to have sold their home in the year of spousal's death to claim tahe exclusion.