Tag Archives: Foreclosure

Mortgage Unpaid

Today TaxMama® hears from GADS in the TaxQuips Forum, with this issue that I probably should not make public: “A 2 family house has been rented for the last 5 years. Both units are rented. The owner stopped paying the mortgage 18 months ago. He still is collecting rents and reporting them on Schedule E. […]

Carrying a Mortgage

Today TaxMama® hears from a couple of people in the TaxQuips Forum, with this problem this week.  They have sold real estate on an installment sale. They have been the mortgage-holder. And after a while, the buyer defaulted and they had to repossess the property. Let’s look at the problems arising when carrying a mortgage.

Short Sale

Today TaxMama® hears from YbSick in the TaxQuips Forum, with a common question.  “In a short sale where they abandoned the property and they receive a cancellation of debt, is it non-taxable since it was on their personal residence? Is there a time limit on how long after they move out of the property it […]

Who Reports the 1099-C?

Today TaxMama® hears from Goran in the TaxQuips Forum, with this issue.  “My client and his mom were on the mortgage together. That property went through foreclosure. Naturally, they file separate tax returns. Which one will report the 1099-C?”

Homebuyer Credit Repayment

Today TaxMama® hears from Kelly in the TaxQuips Forum who cares about her friend. “A friend’s home will soon be going into foreclosure. He’s owned the home for 2.5 years and we’re trying to figure out if he’ll have to repay the $8,000 tax credit he received as a first time homebuyer. I’ve read that […]

Homes and Attributes

Today TaxMama hears from Cathy in the TaxQuips Forum with this question. “Are taxpayers required to file Form 982 when their Principal Residence is foreclosed on? If so, would they check off Part 1, 1e “Discharge of qualified principal residence indebtedness”? If the Cancellation of Debt for a foreclosure is a principal residence, attributes do not […]

Trustworthy Tax Negotiator

Today TaxMama hears from Judy in the TaxQuips Forum who needs help.  “I am struggling to maintain my household, have four years of back taxes to file and settle and my home was just foreclosed on. I was contacted by someone claiming that they can help negotiate a reduction in tax liability and stop any […]

IRS Accepting Applications for Low Income Taxpayer Clinic Grants

Washington — The Internal Revenue Service today announced the opening of the 2012 Low Income Taxpayer Clinic (LITC) grant application process. The grant will cover the 2012 grant cycle, which runs from January 1, 2012, through December 31, 2012. Applications must be electronically filed, postmarked, sent by private delivery service, or hand-delivered to the LITC […]

Ten Facts for Mortgage Debt Forgiveness

Courtesy of IRS If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness.

California FTB Audits – Guaranteed Income

TaxMama note:  The Franchise Tax Board is starting these audits of people who have been relieved of debt in one manner or another. Odds are, at least 30% – 40% of the audits will turn up errors, with taxes due. I bet that 10% – 15% will turn up errors in the taxpayers favor, where […]