If you lost your home to foreclosure last year, filing your taxes wont help you get house back. But at least you wont have to deal with an unexpected tax bill on phantom income.
After a foreclosure, lenders often sell the home for less than the amount left on the mortgage and write off the tax debt. Many borrowers are shocked to learn, though, that this "forgiven debt" is considered taxable income. Say, for example, you owe $400,000 on a home that goes into foreclosure. Your lender sells the home for $300,000 and writes off the remaining $100,000. The IRS will treat that $100,000 as taxable income.
In the past, the only way that taxpayers could avoid tax on forgiven debt was to seek bankruptcy protection or prove to the IRS that they were insolvent.
But now, there is a tax law that would allow exclusion of most mortgage debt that was cancelled. The law is limited to up to $2 million in forgiven debt on a sale of a principal residence. Forgiven debt on the sale of an investment property or vacation home is still taxable.
To claim relief, give us a call (800)790-8574 or contact us via web atadvancetaxrelief.net
ADVANCE TAX RELIEF LLC
www.advancetaxrelief.net
www.advancetaxrelief.net
Testimonial:
"My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful" - Shirley W, Tampa FL.
"My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful" - Shirley W, Tampa FL.
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