Deed In Lieu tax obligations ?Under the Mortgage Forgiveness Debt Relief Act, what tax obligations apply for a deed in lieu ? An RE attorney told me there is no tax on a forclosure through December 2012 .August 21 2011 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.