Posted on: 20th Apr, 2007 11:57 pm
I am one of four siblings on a deed for 19 years, by way of intestate. One sibling owns half and has lived there for 18 of the 19 years, will not buy me out the other two could care less. My husband and I owe the IRS about $20,000 from previous years and my fair share of the property would be at least $45,000. Can I give the IRS my portion since we can not afford to pay them?
Property is in PA.
Property is in PA.
you need to consult a real estate or tax attorney. in my experience, the irs would not want to be added to the deed to take your ownership. they want cash and may be negotiable. your best bet is the equity in your home. a reputable mortgage planner can structure your refinance, take care of other debts you may have, and offer the remainder to the irs.
yeah mNeol,
The IRS does not accept real estate; rather it will demand the money that one owes.
The IRS does not accept real estate; rather it will demand the money that one owes.
Hi Greywolf,
If you are finding it difficult to pay the property taxes you owe, consider doing it with your credit card limit, or withdrawing money from your savings account. You may also liquidate savings bonds, stocks of any. Another way would be to borrow against the 401K plan account, or our life insurance policy, if any.
There are some people who suggest taking a loan against your home equity but then I think it is a risky option, as you can lose your home if you default and the lender forecloses. It is a far better choice to stay away from borrowing against your equity and choosing any other option as stated.
Thanks.
If you are finding it difficult to pay the property taxes you owe, consider doing it with your credit card limit, or withdrawing money from your savings account. You may also liquidate savings bonds, stocks of any. Another way would be to borrow against the 401K plan account, or our life insurance policy, if any.
There are some people who suggest taking a loan against your home equity but then I think it is a risky option, as you can lose your home if you default and the lender forecloses. It is a far better choice to stay away from borrowing against your equity and choosing any other option as stated.
Thanks.
"Can I give the IRS my portion since we can not afford to pay them?"
I also agree that IRS won't accept property in return to what you owe them in back taxes. You will have to arrange for some money to pay off the dues.
I also agree that IRS won't accept property in return to what you owe them in back taxes. You will have to arrange for some money to pay off the dues.
Hi Graywolf,
Welcome to Mortgagefit forum.
One option you can use is ask for approval from IRS of a streamlined installment plan. You will have to fill up and submit Form 9465 which is called the Installment Agreement Request Form. After you fill out the form and send it to IRS, they will review and if found proper approve your request.
To qualify for the plan, the dues that you owe cannot be more than $25,000 and luckily its $20,000 for you. In addition you must be able to pay off the dues within a period of 5 years.
Go through this IRS page to know more about the streamlined installment plan : http://www.irs.gov/taxtopics/tc202.html
Colin
Welcome to Mortgagefit forum.
One option you can use is ask for approval from IRS of a streamlined installment plan. You will have to fill up and submit Form 9465 which is called the Installment Agreement Request Form. After you fill out the form and send it to IRS, they will review and if found proper approve your request.
To qualify for the plan, the dues that you owe cannot be more than $25,000 and luckily its $20,000 for you. In addition you must be able to pay off the dues within a period of 5 years.
Go through this IRS page to know more about the streamlined installment plan : http://www.irs.gov/taxtopics/tc202.html
Colin