Part 4 (Excerpt)

1099 C is for Cancellation of Debt Income Only, not for Interest Rate and Payment Reduction

So for people who find themselves in a very difficult situation considering these options whether it’s a loan modification or a short sale, whatever they need to do to relieve themselves of this particular burden of a mortgage, that for whatever reason they’re no longer able to maintain, they are not always considering the tax ramifications ociated with taking a specific course of action, like this example the short sale option.

Right there is actually two pieces of tax component here, you have the forgiveness of debt income that we talked about, they still have the fact that you sold your house and you have to see if there was a gain on that. Over and above the cost basis of the home.

We talked about the 1099Cs a few moments ago, did you say that the lender sends a copy of the 1099C to the IRS? Absolutely.

Now I’m the guy for a few minutes ago who bailed on $400,000 and sold it for $300,000 am I going to get a copy of the 1099C if I haven’t given my lender my new address. Well that could be a problem, they will send it to the last address they have on record for you. And as a homeowner it’s my problem.

The IRS will get a copy, so they will look for it on your return, if you forget to put it on then you’re going to get a friendly notice from the IRS.

If somebody is going to do a short sale, its a fairly civil transaction and when I say civil I mean going for a short sale is horrible for them and their family, but it beats the alternative which is foreclosure, and I think the real problem is when there’s a foreclosure and the guy just walks away and moves off to El Centro California, he’s the one who’s really getting hurt.

So in the event that somebody takes a course of action, and I know that Velocity financial and Michael Barnes, youre not necessarily advocates for that short sale approach. It’s not normally the best course of action, we’ve been talking about loan modifications and it would help me when I talk to clients, or people who call from radio broadcasts who asked questions about loan modification process as part of a financial strategy, help me with some of the tax ramifications. Let’s say that I have a loan and I know the best thing for me is a loan modification, am I going to be faced with a 1099? A tax bill at the end of a loan modification?

Yes, the first of the two tax implications will apply which will be the debt forgiveness part.

I didn’t mean to interrupt you Mike, well I said there are several different types of loan modifications, I believe are you asking about when the loan modification is where they actually do forgive some of the debt?

Thats a point, I know there’s been a lot of discussion on the use of the TARP funds especially from the federal government regarding these banks that qualify for some of these funds, they have to do principle reductions for their mortgages. So let’s say there isn’t a principal reduction involved, from that aspect, its not a taxable event that could take place, since I’m not reducing my principal, I’m simply getting a reduction in my term or my rate.

That’s right, the only time that taxes would come into play is when the principal gets reduced because thats forgiveness of debt.

So let’s take that one step further, whatever mortgage interest I’m able to deduct on my taxes may be impacted if it’s a lower percentage, right because youll be paying less interest, but there’ll be no surprise 1099 coming your way if its just an interest modification.

One of the things that I like to make thing clear is that were trying to do the best for you the homeowner so you can stay in your home. The situation I’m talking about, the $400,000, the lender is more likely than not is not going to forgive $100,000, however the same lender is more than willing to reduce your interest rate so that your payment would be the same if they have done the principal reduction, because it’s not a permanent loss for the bank. If there is someone out there who’s telling you that they can have your mortgage reduced by tens of thousands or hundreds of thousands of dollars, it’s not going to happen and I doubt it’s going to happen anytime soon.

Duration : 0:5:58

Michele Price
skype: Prosperityconsciousness

Michele Price: The True Story Of How Michele Price Went From Tending Bar At A Restaurant To Living The Life Of Her Dreams (Vol 1)

This is an introduction.

If you would like to find out more about me, please visit my website at http://www.whoismicheleprice.com.

I would *LOVE* to talk to anyone and everyone that has a similar story or is looking for their way out. It isn’t as difficult as you may think to achieve the life of your dreams, you just need to learn how… I can show you the how…

See Your Success!

–Michele Price

focs
fury2wealth
free online cash system
focs scam
free online cash system scam
zero to riches
zero to riches scam
zero2riches
zero2riches scam
free cash online
zero2riches
team bling
team z2r
zero to riches system
free online cash system
abunza
en espanol
canada business opportunity
united states
colorado
california
texas
florida
north carolina
new york
entrepenuer
cash
easy income daily
gutzmediatraining
prosperityweb 20marketing
social media marketing
holly powell
shane garrison
greg demario
justin mcclung
jack henriquez
eric green aka the digital gangster
Cash Gifting, Cash Exchange, Gifting, whatpeoplewantonline, spituality,personal growth, Overnight Cash System, shane garrison, Rob Abrams, Gregory Drake, Matias Leiva, Ruth Sias, Joe Shroeder, mike mikovich, Mike Dillard, Michael Senoff, hispani home based business, Perez Hilton, Cash Gifting Scams, Rich Jerk, focs, devin hunter,tom the fury hat guy,holly powell,Power2teach, Youtube, Magnetic Sponsoring, Magnetic cash Gifting, SOWS, Cash gifting, cash leveraging, freemoneybiz, bob solis, Global cash exchange system, ohio cash gifting, florida cash gifting, Orlando cash gifting, Miami cash gifting, new York cash gifting, California cash gifting, free mlm,free network marketing, overnight cash gifting, rob Abrams cash gifting, international cash traders ociation, women in cash gifting, hip hop cash gifting, alternative rock, latino cash gifting, hip hop music, rock and roll,music scene,dave matthews band,the beatles, $100 cash gifting, $3500 cash gifting, top tier cash gifting, $500 cash gift, $2500 cash gift, $5000 cash gift, $10,000 cash gift, Q the cash gifting expert, Bob Solis cash gifting trainer, web2.0 marketing training, youtube mentor, home based business, work from home, fire your boss, laid off?, resume, job seeker, looking for a job?, careerbuilder, monster.com, hotjobs, help wanted, unemployed, job loss, career management, part-time job, job placement, little guy network, Brittney spears, perez Hilton, paris Hilton, lil wayne, liberty dollar, barter network, zero2riches,free online cash system, Ron Paul, barrack Obama, Election, Vote, Democrat, republican, cashless society, alternative currency, illegal, scam, laws, lawyers, I’ve been scammed, is it legal?, focs, should I join cash gifting?, what people want online, canada cash gifting, michigan cash gifting, texas cash gifting, Have you been scammed by cash gifting?, cash gifting scams, Gift, Give, Receive, I have gifted, I have received, Participation, Golden Rule, Invited by, Constitutional Rights, Sharing, Gifter, Helping others, Right to give, Giving, Nice people, Register your gift, ociates, Fellow man, Kindness, Caring, I gave, Participant, Giving, Free ociation, Activity, Family, Community, Invitation
The G Team
The Golden Team
Zero 2 Riches
Zero2Riches
Free Online Cash System Cash FOCS Gifting Overnight Cash System Overnight Cash Explosion GUTZ Top Affiliate challenge
Prosperity Cast Network Mentors In Motion Val Smyth MIM Magazine www.mentormindset.com www.mimonlinemagazine.com Jeff Mills Success Coach Global uVme Team The Digital Gangster Dennis Karganilla MLM Goldmine System Video Goldmine GUTz Community
Prosperity Cast Network Mentors In Motion Val Smyth MIM Magazine Wes Wyatt www.mentormindset.com www.mimonlinemagazine.com Jeff Mills Success Coach Global uVme Team The Digital Gangster Dennis Team Fury zero 2 riches
zero to riches
zero2riches

“ze ro 2 riches”
“zero to riches”
“[zero2riches” ;

Duration : 0:1:2

We are enslaved by a system which is designed to extract every ounce of our money and energy. The people who wish to control us have used our ignorance to accumulate massive amounts of wealth as we stand by and watch it happen. This video will completely change the way you look at finance and give you the resources you need to break bonds of debt.

Amazon.com

Description – Online shopping from the earth’s biggest selection of books, magazines, music, DVDs, videos, electronics, computers, software, apparel & accessories, shoes, jewelry, tools & hardware, housewares, furniture, sporting goods, beauty & personal care, broadband & DSL, gourmet food & just about anything else.

http://www.managemyinterest.com

http://www.mangagemyinterest.wordpress.com

Duration : 0:9:46