The House of Representatives has passed a bill that would provide relief to homeowners facing the threat of taxes on their foreclosed homes in the midst of the subprime mortgage meltdown.

The bill passed by a 386-27 margin and would allow taxpayers to avoid taxes on the forgiven portion of their mortgage debts. The Internal Revenue Service has considered the forgiven debt to be taxable. President Bush issued a statement praising the bill but urged the Senate to consider it as a temporary measure.

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