Interest On Tax Lien

Comments(8)

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  getitqwik4th December, 2005

  I would report all income I earn and interest income you earn. That is basically the way the tax law works. Failure to report a substantial amount of income can get you in serious trouble. Gray area is one thing, I take all gray areas, but it is spelled out in tax code about interest income reporting...from all sources. Just my opinion. If you have to hide the income you make from the tax man to profit from a deal then you actually do not have a profit. Taxes are a part of ANY legitimate business.[ Edited by getitqwik on Date 12/04/2005 ]

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  Sam7774th December, 2005

  Thanks to you all. I am just getting my info together.

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  michaelbazin6th December, 2005

  All of the Counties that I know of require the lien buyer to complete a w-9. When the property is redeemed you get a 1099-Int from the County at the end of the year. Then you need to report the income on your tax return

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  Sam7776th December, 2005

  Thanks again. I am very new in the field, I am just collecting info at this time to arm my self with some knowledge. This group is perfect and helpful.

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  Taxivestor18th December, 2005

  I know to report the interest received . However, how do I offset my costs, e.g., registration fees, postage,, list purchases and any other due diligence expenses? Thank. you.

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  Taxivestor21st December, 2005

  Regarding tax lien expenses.........
  
  How does anyone else handle them on their tax forms?
  
  Thanks.

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  Sam77722nd December, 2005

  Thanks for good wealth of information. I found it very beneficial to go through Q & A to learn a lot about the subject of tax lien.

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  geo_reilly26th December, 2005

  cheers digital_precision. Sounds like you have a few good stories for the bar.