The Raleigh-based Luxury Home Marketing Group joined forces with the North Carolina Association of Realtors to head off legislation that could have cost the most vulnerable homeowner higher taxes at the time they could afford it least. The ‘Mortgage Cancellation Tax’ provision of the proposed legislation (SB 20/HB 40) would have forced homeowners to pay 5.75% state income tax on cancelled mortgage debt, as if it was cash, even though the homeowner would never have taken the money in cash.

“Our organization focuses on helping an elite segment of the marketplace make the most of their home buying and home selling experience,” said LHMG President Jill Rekuc. “However, this issue had the potential to cost every kind of homeowner thousands of dollars that they didn’t owe. Our members joined with the NCAR to encourage lawmakers that this was a bad move for North Carolina families.”

Lawmakers listened to industry representatives and removed the provision from the bill. However, the Luxury Home Marketing Group will continue to monitor this important issue with other North Carolina Realtors. Read more about this bill at the NCAR website.