Posted on: 13th May, 2010 01:27 pm
my loan company is offering to reduce the principal by 39% on my second mortgage if i pay it off.
what kind of tax liability do i have? is this a legitimate offer?
what kind of tax liability do i have? is this a legitimate offer?
Hi jas!
Welcome to forums!
The forgiven amount can be considered as your income by the IRS and you may have to pay taxes on it. As far as the legitimacy of the offer is concerned, you should sign all the required documents and ask the lender to give you a written statement mentioning that 39% of the principal balance will be reduced.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The forgiven amount can be considered as your income by the IRS and you may have to pay taxes on it. As far as the legitimacy of the offer is concerned, you should sign all the required documents and ask the lender to give you a written statement mentioning that 39% of the principal balance will be reduced.
Feel free to ask if you've further queries.
Sussane