Posted on 02/02/2010 9:43:50 PM PST by Steelfish
"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus
If I were in that situation, I would seriously consider expatting — before they took my passport.
Question is, where could you go?
I got it! She should get elected to Congress! Problem solved!
(America. What a country!)
Except my friend is a responsible person ( except for the BHO part), and makes a good amount of money. It will be on her tax bill for years gathering interest and penalties. Her only way out in liberal America is to stop working, thus making the IRS pursuit futile.
I just dont understand maybe i’m stupid or something but how do you get 400 k out of someone who had to walk away from a rental property or even primary for that matter a “loan forgiven” dose not actually have any money exchanging hands its just a load off the person who cannot in most cases {or some cases} who cant afford to live in such homes themselves ?
My Wife and i are both scratching our heads on this one !
I see the current freeze on current SS benefits and the continued push for socialized ObamaCare, and a purposed 21% reduction in payouts of Medicare doctors as a means to effectively 'kill off' the boomers as another big piece of the puzzle as to what is coming.
Remember we are soon to be 14. something trillion dollars in debt with shrinking tax revenues and a beast that continues to grow (goobermint) with no real solutions nor actions being implemented.
Mr. Walsh is taking his own advice, recently defaulting on a rental property he owns. “The sun will come up tomorrow,” he said.
Unbelievable....
A man’s word means bupkis nowadays.
The taxpayer now is left holding all the debt with nothing of value to show for it.
Detroit comes to mind.
Or just move out and forget to leave a forwarding address. Costa Rica, perhaps? Or Moldova, if she's feeling adventurous.
I’m confused, too, and I have a law degree and have taken tax classes. BUT, here are the facts: 1. She had property foreclosed 2. the mortgages were about $400K 3 she just received 1099s from the banks that foreclosed reporting “ income “ to the IRS in the amount of $400K.
I understand that forgiven loans = income. But here, she should get an off-set for the amount collected when the houses are re-sold. As I said, apparently not, as she just got the 1099s for the ‘09 tax year.
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That doesn’t make sense. You don’t get a 1099 following a foreclosure nor is the debt forgiven (it no longer exists and the person obviously doesn’t keep the house). Only when the debt is negotiated down and the borrower keeps the property does debt reduction occur and a 1099 generated.
I have little sympathy for folks who CAN afford their mortgage, but say “screw it” and walk away.
However, what of the folks who absolutely CAN’T afford their mortgage? What do you say to them? “You should’ve bought a house you can afford”? Really? That’s the only thing you have to say? “Monday morning quarterback” is the term that comes to mind.
So, in FReepers’ minds, if it’s “mortgage” or “survival,” they are required to choose “mortgage”? Do I have that right?
Congresswoman urges we use Squatter’s Rights
http://www.freerepublic.com/focus/f-news/2443243/posts
When a lender forgives a recourse debt with respect to a transfer of property, the debt relief is considered a sale of the property up to the fair market value of the property. The taxpayer subtracts the adjusted basis of the property to determine the gain or loss (Sec. 1001). Losses on principal residences are not recogized (Sec. 165(c)). Gains and losses on rental property are recognized. Any debt relief greater than the fair market value of the property is income from discharge of indebtedness (Regs. Sec. 1001-2(c) Example 8 and Sec. 61(a)(12)). Income from discharge of indebtedness might be eligble for exclusion from gross income under Sec. 108.
If the debt relief is nonrecourse debt with respect to a transfer of property, all of the debt relief is treated as sales proceeeds on the sale of the property (Regs. Sec. 1.1001-2(c) Example 7).
ping
The U.S. has 20% vacancy rates in office spaces and shopping malls.
In residential real-estate, the U.S. has 19 million vacant homes.
For Industry, most factories are running at 40% of capacity.
Since 2007, the first of 77 million Baby Boomers began hitting retirement age (62) in a wave that continues through 2025.
Where the U.S. once bought 17 million new cars per year, we now buy 11 million or so.
Likewise, Baby Boomers want out of their McMansions and into their little retirement cottages.
In economics, the above situation is known alternatively as either over-production or under-consumption.
The Historical answer to over-production is...drum roll...a Recession.
Each such over-production Recession typically lasts until over-capacity has been destroyed, thus reforming the market.
Governments typically fight the above by propping up the ability to produce (ala zombie factories and zombie banks). No one wants *their* factory shut down, after all.
Until you see such reform, however, there is very little Historical evidence of a Recovery beginning.
Thus, fighting to save production capacity always extends the duration of the Recession.
form 1099, debt “forgiven”
^
Just heard about that one, an acquaintance had debt “forgiven” of $2000, that was added to the taxable income increasing the tax liability $400
Sometimes “whatever it takes” is more than it is physically possible for you to do.
Four words: It needs to fail.
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