Comments for Las Vegas Loan Modification

Comment on Mortgage tax question? by StephenWeinstein

StephenWeinstein — Thu, 04 Nov 2010 20:29:59 +0000

They must issue a 1099-C. This is not optional. They are required to do it. The only way to prevent it is to pay the full $133,000, instead of just $15,000. If you were not insolvent, then you will owe taxes on it.
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Comment on Mortgage tax question? by ninasgramma

ninasgramma — Thu, 04 Nov 2010 20:24:59 +0000

From your description, your second mortgage was acquisition debt and was initially secured by the home before the foreclosure. The Mortgage Forgiveness Debt Relief Act does not restrict the exclusion of canceled debt only to first mortgages. So it appears that your cancelled debt is exempt from the information you have provided. Keep all those records in case the IRS wants to challenge the nature of the debt.
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Comment on Mortgage tax question? by tro

tro — Thu, 04 Nov 2010 19:46:59 +0000

the form 982 is on the original mortgage
a second and especially unsecured with very likely result in taxable income
but you won’t know this until the bank issues you a 1099 C
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Comment on Mortgage tax question? by acmeraven

acmeraven — Thu, 04 Nov 2010 19:08:59 +0000

Go to IRS.GOV and download Pub 17 and Form 982 plus the instructions for form 982. You had to move and this was the cause of you having to involuntarily give up your home for a loss due to underwater financial problems. I think this is where the Form 982 with your return will eliminate any taxability of the 1099C. Read the 982 instructions and look the form over.
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Comment on Mortgage tax question? by Bobbie

Bobbie — Thu, 04 Nov 2010 18:29:59 +0000

Yes that could very well happen.
Use the search box at the http://www.irs.gov website for The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.
The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

What is Cancellation of Debt?

Use the below enclosed website addresss for more detailed information and some question and answers
Hope that you find the above enclosed information useful good luck.
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http://www.irs.gov/

http://www.irs.gov/individuals/article/0,,id=179414,00.html

Comment on Mortgage tax question? by Steve D

Steve D — Thu, 04 Nov 2010 17:43:59 +0000

Guidance from the IRS (see link below, pages 7 and seems to indicate that as long as you can prove you used the second loan for purchase of the house and/or improvements, then it is covered under the Mortgage Debt Forgiveness Act and is exempt from taxation.

See a good tax attorney or accountant with all your paperwork.

http://www.irs.gov/pub/irs-pdf/p4681.pdf
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Comment on Mortgage tax question? by Charlie

Charlie — Thu, 04 Nov 2010 17:19:59 +0000

Read Pub 4681.

Based on my reading, since it’s acquisition debt or improvement debt and secured by the house, it qualifies.
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Comment on Mortgage tax question? by Iffy

Iffy — Thu, 04 Nov 2010 16:32:59 +0000

Yes they will. You owe and if loan is forgiven then IRS considers it income
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Comment on I would like to buy a home in Las vegas for rent investment. Any good real estate agent? by Jeff K

Jeff K — Sun, 03 Oct 2010 15:22:59 +0000

I’d look in your local phonebook for realtors or maybe check out an online real estate agent directory to find one for your area. Good luck.
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http://www.agentfinder4u.com/

Comment on How do I get out of an underwater mortgage? by Expert Realtor

Expert Realtor — Sat, 25 Sep 2010 14:21:59 +0000

Parenting advice: If your son gets used to 100% silence in order to sleep, you are going to have a long hard road ahead..kids will sleep with noise in the house. He has to learn to live with it.

The stove is not a concern…every parent has had kids that has woke up before they do and it is very, very difficult for a toddler to coordinate turning the stove on.

You are stuck, for now…but there is no guarantee when you buy any real estate that the value will go up or stay the same.

PS: Where did you get the value from? If you are using Zillow, that is not accurate.
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