1099 Question
What is the current discussion in Washington on forgiving the debt from a short sale.
Surrently the seller will be looking at a large tax bill come April 15.
Any help would be great. If you have any exact info or a link to where I could research this more I would greatly appreciate it.
Currently, borrower insolvency trumps taxable income arising from forgiven debt.
Proposed subprime foreclosure relief legislation is aimed primarily for owner-occupants and would eliminate tax on forgiven debt resulting from short sale.
ForeclosureNegotiator
In looking at your “Signature” on your information page I notice that by going to your web site, that E-book, FORECLOSURE NEGOTIATING: My Secrets of a Short Sale
you refer to was written by you.
You wouldn’t be trying to self-promote and push your products here on this site now would you???
John (LV)
TCI Moderator
Quote:On 2007-12-01 13:00, ForeclosureNegotiator wrote:
So, as another reaction to the “Mortgage Meltdown”, the federal government is forcing the privately owned corporation known as the Internal Revenue Service (the IRS) to no longer tax the discounted difference on short sales. This is good news for not only the..."
The last time I checked, the IRS was an agency of the US Government.
In September 2006, the IRS started to outsource the collection of taxpayers debts to private debt collection agencies. It is some of this collection activity that is being conducted by privately owned businesses, not the entire function of the Internal Revenue Service.
New Kid,
I gotta assume the IRS comment was a joke of some sort. Nobody could believe the IRS is anything other than the collection wing of the protection racket known as the US government.