KNZ law is excited to announce that Dustin Zacks‘ latest article, regarding tax liability homeowners may face upon surrendering their properties, has been published in the Arkansas Law Review as part of their 2013 symposium on the mortgage foreclosure crisis. Dustin’s previous foreclosure research has been cited by the Supreme Court of the State of Washington, by law professors at the University of California-Berkeley and the University of California-Davis, by economics professors at the University of Wisconsin and Montana State University, and he has lectured attorneys nationwide about foreclosure-related litigation issues.
The new article, entitled Avoiding Insult to Injury: Extending and Expanding Cancellation of Indebtedness Income Tax Exemptions for Homeowners, can be downloaded by clicking here. The article describes how homeowners who decide to surrender their properties can face tax liabilities for debts forgiven by banks and lenders. While many academic and popular press articles have discussed how helping homeowners avoid this potential taxation would be unfair and would spur more people to default, Dustin’s new article is the first scholarly account in defense of allowing homeowners to avoid tax liability when they surrender their properties.