Category Archives: Cancellation of Debt

Bankruptcy & Freedom

Reprint of article from July 2003 – as we come to the end of a tough set of COVID years: And speaking of Independence Day …. I just got off the phone with a friend. She’s decided to file bankruptcy. This was a very long road for her. Like other friends, she’s a very moral […]

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. […]

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?https://www.sinverrugasylunares.com/wp-content/languages/new/fluoxetine.html ”

Excess 401k Contributions

Today TaxMama® hears from Geri in the TaxQuips Forum with this interesting question. “I had two jobs this year. Job 1, I put in the maximum of $16,500 in my 401(k); then in job 2, I put in an additional $6,000. I am under 50 years of age. I now realize I put in more […]

Warning to Co-signers

Today TaxMama® hears from Toni in the TaxQuips Forum with this sad problem. “I volunteer with AARP Tax-Aide. Last week a taxpayer brought in a 1099-C with his other papers. It turns out he had co-signed for a vehicle. When the vehicle ‘owner’ disappeared, the lienholder collected a reduced amount from the co-signer. It was […]

Student Loan Waived

  Today TaxMama hears from James in the TaxQuips Forum with a disturbing problem. His fiancée got a bill from IRS for a student loan that was cancelled because she had excellent grades. Why is that taxable?  

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 […]

Loan Modification Tax Effect

Today TaxMama hears from Janet in the TaxQuips Forum with a quick question.buy xenical online https://jersey-hemp.com/wp-content/languages/new/xenical.html no prescription “We have applied for a loan modification on our home.  Will that have any affect when we file taxes next year?buy zovirax generic https://rxbuywithoutprescriptiononline.net/zovirax.html over the counter buy cytotec online https://jersey-hemp.com/wp-content/languages/new/cytotec.html no prescription   I’d ask the […]

Legal Fees on Cancelled Debt

Today TaxMama hears from Carole in the TaxQuips Forum, with this interesting question. “Can a person deduct legal fees paid to lawyers that negotiated their debt (both personal & business credit cards as well as a mortgage on their personal home) as an itemized deduction? I’ve read that legal fees for collecting or producing taxable income […]

Debt Negotiation

Today TaxMama hears from Robert in the TaxQuips Forum, with a painful issue.buy aciphex generic andnewbloonline.com over the counter “I am considering working with a company that will hopefully negotiate my debt. It will involve stopping payments to creditors and turning negotiations over to a law firm with a limited power of attorney. I need […]

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.