Posted by James on July 19, 2010 at 09:21:50:
So, next year file a form 982 and don’t even worry about the taxes on hte forgiven amount.
Need some good Advice… - Posted by Sandra Jackson
Posted by Sandra Jackson on July 18, 2010 at 15:14:46:
I need some good advice, the county appraisal just came out in My
county in Florida , I have a lot that was purchased back in 2006 for
350k now it’s worth 48 k, And I have a mortgage of 225k, to make
matters worst I got laid off 2 weeks ago, and the savings I have I
will need for basic things like food and fuel.What should I do? File
for bk?I am really lost…
Re: Need some good Advice… - Posted by James
Posted by James on July 19, 2010 at 07:07:54:
Well, Firsty and foremost, Sounds like the county is appraising your proerty for tax purposes. So, the value is not the true value of the property. As to the unemployment issue, talk to your lender before you do anything such as a BK. They may allow you a forebearance. You may be able to sell the property if you cannot work with your lender. Have you signed up for unemployment? Have you been seeking work? What is the foreclosure process in Florida? beginn educating your self about your situation. You may have to utilize your local food pantry. There are agencies that may help you in your situation. Start asking around in some of your local charities. They are there to help. Hope this helps.
Re: Need some good Advice… - Posted by Rick Harmon
Posted by Rick Harmon on July 18, 2010 at 16:29:07:
Prioritize. Decide what’s most important and what you can live without. Start with food ands water and work your way down the list.
Ask yourself, ‘what am I willing to live without?’
If driving a nice car and looking good is more important than eating, just put it on your list. If you don’t have an income, don’t get goofy and try to protect yourself from lawsuits.
Remember: (and this is universal throuighout the United States): “They can takethings away from you but they can’t eat you.”
[Quote from my former wife, a kindergarten school teacher]
Re: Need some good Advice… - Posted by Sandra Jackson
Posted by Sandra Jackson on July 19, 2010 at 07:44:14:
The Mortgage Forgiveness Debt Relief Act of 2007 does
not apply on my case,since is a investment property not
a primary residence Do you have any idea how much taxes
I will pay to the irs?Thanks
Re: Need some good Advice… - Posted by Sandra Jackson
Posted by Sandra Jackson on July 19, 2010 at 08:00:17:
I have no problem with that thanks, I can live a simple
life, I would like to know the best route to take ,
there’s too much information online , but you dont know
what to trust , who to trust, Do you know any
organizations I can contact that are not money driven ?
Thanks everyone
Re: Need some good Advice… - Posted by Mary Contrary
Posted by Mary Contrary on July 19, 2010 at 07:31:20:
File a Chapter 7 and get a fresh start.
Re: Need some good Advice… - Posted by James Harris
Posted by James Harris on July 19, 2010 at 07:57:36:
Tose taxes probably will go to the county you live in.
Not the IRS. Is the property rented?
Re: Need some good Advice… - Posted by Sandra Jackson
Posted by Sandra Jackson on July 19, 2010 at 07:52:22:
I heard that filling for BK does not wipe off credit
card debit anymore,My land cannot be included on
Mortgage Forgiveness Debt Relief Act of 2007 , because
it was an investment property not a residential
property , Do you have any idea how much taxes I will
owning to the goverment?Thanks every one
Re: Need some good Advice… - Posted by Sandra Jackson
Posted by Sandra Jackson on July 19, 2010 at 08:09:29:
It is a vacant land,Here is what I found: When you
borrow money from a commercial lender and the lender
later cancels or forgives the debt, you may have to
include the cancelled amount in income for tax
purposes, depending on the circumstances. When you
borrowed the money you were not required to include the
loan proceeds in income because you had an obligation
to repay the lender. When that obligation is
subsequently forgiven, the amount you received as loan
proceeds is normally reportable as income because you
no longer have an obligation to repay the lender. The
lender is usually required to report the amount of the
canceled debt to you and the IRS on a Form 1099-C,
Cancellation of Debt.
Here?s a very simplified example. You borrow $10,000
and default on the loan after paying back $2,000. If
the lender is unable to collect the remaining debt from
you, there is a cancellation of debt of $8,000, which
generally is taxable income to you.But that applies
only to residential.thanks
Re: Need some good Advice… - Posted by randyOH
Posted by randyOH on July 19, 2010 at 12:23:05:
There is an exclusion to cancellation of indebtedness income if you are insolvent (liabilities exceed FMV of your assets).
See page 24 of this publication: