Posted on: 31st Jul, 2009 08:36 am
I just recently went through a short re-finance. Yes, I was one of the few that my mortgage company was able to help out. So basically, my previous mortgage for $430,000 went down to $135,000 and I'm so happy about that!
A friend of mine recently told me that at the beginning of next year, I should be expecting to pay thousands of dollars ($30,000 to be exact) in back taxes to the IRS for taking such a huge loss on my home. Is this correct? Because I thought the mortgage company took care of that.
A friend of mine recently told me that at the beginning of next year, I should be expecting to pay thousands of dollars ($30,000 to be exact) in back taxes to the IRS for taking such a huge loss on my home. Is this correct? Because I thought the mortgage company took care of that.
i can't comment, frankly, on the irs' requirement as it relates to this. as far as the mortgage company "taking care of" the issue, i don't imagine that's the case at all. how they could do so is something i wouldn't understand, honestly.
i'm always a little bit leery of information given to me by "a friend." i guess you are, too, or you might not have posted this inquiry.
you can certainly check on the taxation question with the irs directly.
i'm always a little bit leery of information given to me by "a friend." i guess you are, too, or you might not have posted this inquiry.
you can certainly check on the taxation question with the irs directly.
George correctly notes that an accountant needs to answer your question.
Forgiven debt is normally taxable, however, because of the poor economic times and the problems housing and mortagges are having, the IRS passed a ruling that forgiven mortgage debt on houses you live in would not be taxed (investor property forgiven mortgage would probabaly be taxed).
The mortgage company does not have anything to do with whether or not ou are taxed.
Once again, check with an accountant. Only an accountant can advise you properly.
Forgiven debt is normally taxable, however, because of the poor economic times and the problems housing and mortagges are having, the IRS passed a ruling that forgiven mortgage debt on houses you live in would not be taxed (investor property forgiven mortgage would probabaly be taxed).
The mortgage company does not have anything to do with whether or not ou are taxed.
Once again, check with an accountant. Only an accountant can advise you properly.
