subject: Tax Help – Relief From Foreclosure [print this page] Fact is, if the foreclosure of their homes has wiped out your debt, but you still have money coming to you, you may be liable for taxes on that amount. But there is help available. For example, if your assets exceed liabilities, you may be able to offset net income by the foreclosure. This and much more is explained by the IRS in a new section of its Web site (IRS.gov). It was developed in order to have individuals and families who lost property due to foreclosure. It isout created to help you, whether you qualify for foreclosure relief.
There are other types of help available. Here you will find a form to fill out the request for a payment agreement. Here you will also find assistance in paying off your debt for a fraction of the entire basis of the so-called "an offer in compromise." Please note that your relief less than you might have hoped. For example, if there was a part of your home for business purposes, you can not be qualified. Even if theHome was a rental property, you can not get the benefits.
If your house is impossible, you will receive a form 1099-C at the end of the year by the mortgage company. This form will show how much debt was forgiven. It also demonstrates the value of the property given up under duress. If the property is sold at an auction that is the market value, but not always. To verify the 1099-C carefully. If you find any discrepancies or errors, you must call yourLenders.
In particular, you should have two numbers: the amount of debt forgiven and consider listed value for the property. Please note that your lender has to send a copy of the 1099-C to the Internal Revenue Service. They reserve the right before you get in touch if the information on this form conflicts with everything that report on your tax return. So now bear the responsibility to avoid problems later.
