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H_T_R_N
Premium
join:2011-12-06
Valencia, PA
kudos:1
Reviews:
·voip.ms

1 recommendation

reply to PrntRhd

Re: Collection Agency...What Is Typical?

said by PrntRhd:

Agree, the other little "stinger" is the debt charge off can appear on his taxable income and he will have a hard time convincing the Federal IRS to make that one go away.

A lot of people who took a principal mark down on their home are going to get hit with that one day and not be happy. If you had a 30k mark down you, as far as the IRS is concerned, made 30k more than you think you did that year. This will push people out of EIC and if you made any money, into another tax bracket. If you go years without being caught, the fines, fees and penalties, along with audit charges for a CPA can be HIGH!!!!!


jimothy

@mchsi.com
said by H_T_R_N:

This will push people out of EIC

good


Kramer
Premium,Mod
join:2000-08-03
Richmond, VA
kudos:2
reply to H_T_R_N

PrntRhd
Premium
join:2004-11-03
Fairfield, CA
reply to H_T_R_N
This is not the special exclusion for home refi case.


Kramer
Premium,Mod
join:2000-08-03
Richmond, VA
kudos:2
"Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief."

H_T_R_N
Premium
join:2011-12-06
Valencia, PA
kudos:1
Reviews:
·voip.ms
said by Kramer:

"Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief."

But only for the amount the home was valued at when the refi or mortgage was taken out. If the funds used were not for direct use in or of the house, it is not forgiven. There is a fine line, most cross it, when there is a audit it will get ugly.

Edited to add from »www.irs.gov/uac/Mortgage-Workout···IRS-Form
The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.


AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1
reply to H_T_R_N
said by H_T_R_N:

said by PrntRhd:

Agree, the other little "stinger" is the debt charge off can appear on his taxable income and he will have a hard time convincing the Federal IRS to make that one go away.

A lot of people who took a principal mark down on their home are going to get hit with that one day and not be happy. If you had a 30k mark down you, as far as the IRS is concerned, made 30k more than you think you did that year. This will push people out of EIC and if you made any money, into another tax bracket. If you go years without being caught, the fines, fees and penalties, along with audit charges for a CPA can be HIGH!!!!!

wasn't this waived during the early stages of the housing crisis?
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olive403

join:2012-10-10
Canada
Reviews:
·WestNet Wireless
reply to AZinOH
niece did the same thing years ago after she signed up to BELL mobilty for a cell phone - they said they could not activate her ESN and said there would be no account - they sent her 300 dollar collection notice got r9 on both credit files - spent hours trying to clear it up but she ended up going to the US for school and never returned.
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