Homeowners Who Negotiate Debt Relief Could Soon Face Massive Tax Bill

"You bought your house when the market was high and then lost your job. In order to avoid foreclosure, you negotiated a short sale for half of what you paid, ruining your credit rating for years and draining your bank account. But there is a tiny silver lining: Thanks to a 2007 law, you don't have to pay taxes on the $100,000 of debt your bank forgave as part of the short-sale agreement. This week, real estate columnist Kenneth R. Harney pointed out that this important tax break will expire at the end of 2012 "