Saving Our MALLS Act

This bill changes the tax code so that some forgiven business loans tied to real estate don’t count as taxable income. It covers certain “commercial or retail” debts that are secured by business property, like buildings used in a trade or business, helping shops and other businesses that had debt forgiven during a set time window.

Key points:

• Who is affected: Businesses with commercial or retail loans that are secured by real property used in the business (some special property types are excluded by existing tax code references).
• What changes: If these loans are forgiven, the amount forgiven would not be counted as income for federal taxes, as long as it meets the rules below.
• Time limits: The loan had to be taken on before March 1, 2023, and forgiven between December 31, 2023 and January 1, 2028.
• When it applies: For debts forgiven on or after December 31, 2023.
• Other tax effects: It keeps the usual rules that can reduce certain tax benefits when forgiven debt isn’t taxed, so some other tax items may be adjusted.