IRS News Release: Covid Housing Assistance Excluded From Income (IRC §61)

Coronavirus State and Local Fiscal Recovery Funds (SLFR Funds) frequently asked questions adds three questions regarding state help in purchasing a home, the IRS announced. Under the general welfare doctrine, gross income does not include state/local government assistance to pay some or all of the down payment and closing costs associated with the purchase of a home under a program to support those negatively impacted by the Covid-19 pandemic, the IRS stated. For a taxpayer excluding the benefit from gross income for payment of private mortgage insurance, such premium cannot then be deducted by the taxpayer, the IRS provided. The ...