Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "form"
Getting To Know The 1099 Form
Article by Paul Wise Did you know that the 1099 Form comes in, well, many forms? It’s likely that, most people wouldn’t have, if they even know what a 1099 is! All things considered, the vast greater part of folks in the country simply don’t have to deal with it whatsoever, so it wouldn’t be surprising that they not only didn’t know that the form can take, uh, many forms but, also, that such a form exists in the first place! Before getting to that, we may recognize our great government to be genuinely suspicious of everyone’s activities due to former problems, but the largest laws remains which is the aforementioned forms. There are many distinctive types of forms with their own unique surveys. Some could find filling out applications to be … Read entire article »
Filed under: Insolvency
What is the form 982 with the IRS?
What is the form 982 with the IRS? … Read entire article »
Filed under: Insolvency
Canceled Debt and Form 1099-C
A brief look at the IRS’s definition of Canceled Debt as well as Form 1099-C. … Read entire article »
Filed under: Insolvency
IRS Form 982? Avoid Debt-Relief Taxes
Homeowners whose mortgage debt was partly or completely forgiven during 2007 may be capable to claim special tax relief by filling out newly-revised Form 982 and connecting it to their federal income tax return, as per the Internal Revenue Service. Generally, debt forgiveness results in taxable income. Every home loan does not qualify for tax relief. To qualify for exemption, the debt must have been taken to build, buy, or improve your residence or refinance mortgages originally incurred for that reason. For full exclusion, the loan amount must not be more than $ 2 million and $ 1 million for married filing individually or single taxpayers. Debt occurring due to mortgage refinancing can also be integrated. However, IRS tax relief can only be availed depending upon the old mortgage standard. The new … Read entire article »
Filed under: Insolvency
IRS form 982 line 10a “basis” Reduction & Attributes Due to Discharge of Indebtedness?
Example: 4 personal credit card loans settled within weeks of each other with a total forgiveness of approx $45K. Insolvent (total assets less total liabilities) by $ 82K (negative) 1 day before and still insolvent by no less than $52K (negative) after any of the forgiven debts. Checked box 1b and entered $45K on line 2. What do you need to calculate for line 10a in Part 2 since the degree of insolvency is still greater than the forgiven debt before and after? What is done with the value for line 10a? Is it advantageous to have a larger value or smaller value on line 10a in relation to the amount of forgiven debt? … Read entire article »
Filed under: Insolvency
IRS FORM 982- EXCLUSION FROM INCOME CREDIT CARD DEBT FORGIVEN IF INSOLVENT?
My wife had $10,000 in credit card debt forgiven via settlement. It was her debt alone. We file jointly. I have a worksheet to determine insolvency. In adding up assets and liabilities, do I include just hers or must I also include mine? We have no joint assets except a checking account. We own no property. I own the car. Are the value of IRAs included in the assets or is it excluded? Thank you! A welcomed response stated that we have to file married filing separately to only list my wife’s assets and liabilities to establish insolvency. I live in North Dakota that is NOT a community property state. Does this change the need to file MFS? … Read entire article »
Filed under: Insolvency
Form 982 Part II Insolvency?
What do I enter on line 10a if the smallest of (a,b,c) is a negative number in terms of reducing my bases? … Read entire article »
Filed under: Insolvency
Re Form 982 Insolvent cx mortgage debt (paid credit cards) and reduction of attributes.?
The cx debt was $16,620.. The insolvent worksheet shows fmv assets $69,004. Liabilities $117,936. Insolvent amount $48,932. I have read the publications regarding this, but need help with the attribute reduction part. I think it’s zero but some said it can’t be zero. Then I got confused. The original cost basis of assets was $92,288, Liabilities after cx is $101,316. But the fmv used to determine insolvency now is $69,004. Can you help me out on how to figure the attribute reduction. … Read entire article »
Filed under: Insolvency
Regarding Income from Cancelled Debt, What If You Never Receive a 1099 Form?
I had a lot of debt settlement activity in 2009 and I’m aware of how to handle that activity as it relates to taxes, but my question is this: what if I do not receive some (or perhaps all) of the 1099 forms associated with this settlement activity? Do I count it as income anyway and base the numbers on my records, or do I just include what I actually receive 1099′s for? It’s kind of a moot point since I can make a case for insolvency and therefore won’t have to figure it in as income anyway, but I don’t want to open myself up for an audit should the IRS think I should be showing more income that what’s in my tax return because of the settlement activity. … Read entire article »
Filed under: Insolvency
form 982 is going to drive me to a mental ward?
im using the form 982 for insolvency on credit card debt settlements. someone please help me. im going to give round figures so its easier. 1. the total settled debt is 12000.00 2. i have a mortgage AND equity loan totalling 41000.00 (when getting the equity loan several years ago, the homes appraisal was 42000.00) 3. the original amount of cc debt before settlement was 18000.00 Where do i come up with current home value……….and what do i do with it on the insolvency issue when i still have mortgage loans on the property with no real equity left over? where do i come up with asset values for my other personal property? this is going to give me a stomach ulcer. … Read entire article »
Filed under: Insolvency
Debt Settlement and Form 982?
I am going through debt settlement and trying to plan accordingly. I am a renter and only own an old Jeep worth roughly $1,000, bank account after I get on the plan will stay around $2,000 and other than that, the car I drive, I’m still paying on so hoping someone can confirm my understanding of the law. Estimated total debt of cards to be settled: $82,000 (does not include my current car note) Estimated assets (jeep & bank account): $3,000 Insolvent: $79,000 So if the debt is settled for, lets say 60% of total it would be $49,200, therefore the remaining $32,800 would be reported on a form 1099C. I would then take that $32,800 and subtract the amount of my “insolvency” of $79,000 and any taxes would be due … Read entire article »
Filed under: Insolvency
