Posted on: 01st Jul, 2008 10:00 am
Sorry, I did not realize I was submitting the question as a quest. Here it is again, if I live in Iowa and the property is a non-owner occupied, rental property, will I have to include the difference in what I owe and what is actually accepted by the lender as payment in full as income on my taxes for 2008?
Also, how will it appear on my credit report, ei; paid in full, settled for less, profit and loss etc? Thanks
Also, how will it appear on my credit report, ei; paid in full, settled for less, profit and loss etc? Thanks
Hello lvonah.
Can you tell me whether the debt is forgiven or not? If only the debt is forgiven then it is considered as your income. But if the debt is not forgiven then you will have to pay the deficiency amount and that is why there is no question of paying tax on it. If you can pay off the deficiency judgment then it should be written as paid in full.
Let me know if you have further queries.
Can you tell me whether the debt is forgiven or not? If only the debt is forgiven then it is considered as your income. But if the debt is not forgiven then you will have to pay the deficiency amount and that is why there is no question of paying tax on it. If you can pay off the deficiency judgment then it should be written as paid in full.
Let me know if you have further queries.