[Fkatz]

On December 20, 2007 President Bush signed into law the MORTGAGE RELEIF ACT OF 2007.
If you had any of the three provisions and your Accountant, CPA, or Tax Preparer did not tell you about it, Even if it did not pertain to you. You are missing out on tax updates that you should of known.

# 1 MORTGAGE DEBT FORGIVENESS:

Taxpayers can exclude up to 2 million of mortgage debt on there principal residence($1 million for married filing separately. Normally a forgiven debt is counted as income to the tax payer. this law excludese that rule.
This debt must be incurred with a loan secured on the primary residence.
*During Acquisition
*During Construction
*For making substantial improvements
*For refinancing-if the amount does not exceed the amount of the refinanced debt.

#2 MORTGAGE INSURANCE PREMIUMS

The Taxpayer can deduct mortgage insurance premiums as "home mortgage " interest on interest paid after December 31, 2006 and before January 1, 2011.

#3 VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL RESPONDERS

Volunteer Firefighters and Emergency Medical responders can exclude payment for these services up to #30.00 a monht

Exenses paid in connection with these service are allowed as a charitable contribution deduction.

Circular 230 Disclaimer - Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.

Frank Katz,ATP, PA
Frank's Tax & Bsuiness Service