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Debt Relief – Insolvency – Bankruptcy Information » Entries tagged with "Taxes"

File Bankruptcy On Taxes

Many people incorrectly assume that they cannot file bankruptcy on taxes. This notion may stem from the prevailing belief in the United States ever since Benjamin Franklin uttered the famous quote: “In this world nothing can be said to be certain, except death and taxes.” Liability for income taxes is often a very stressful issue, especially for business owners. Employees usually have their taxes taken out of the paychecks each pay period, so they are prepaid come April 15th. But when it comes business owners, they pay themselves and usually do not set aside the necessary savings to cover their anticipated liability. So tax time rolls around and they stress about how they will meet their obligations to Uncle Sam. The good news, for many people, is that if you have gotten … Read entire article »

Filed under: Bankruptcy Law, Insolvency

Caution! If You Are Not Careful You May Have to Pay Taxes on Your Cancelled or Reduced Loans

Article by Seomul Evans If you are neck deep in debt and are constantly trying to make ends meet, you may get the biggest reprieve if the bank or lending institution that you are dealing with agrees to cancel or reduce your debts. Now, don’t be under the impression that this is going to be easy; however, it is not impossible either. Getting your debts cancelled or reduced is a wonderful way to start on clean slate; all your records will be cleaned and you will be free from the pesky monthly payments that were giving you sleepless nights. But if you are not careful, this boon may turn into a curse faster than you know. You may have to pay taxes on any debt reduction or cancellation if you don’t … Read entire article »

Filed under: Debt Relief, Insolvency

Dealing With Taxes on Your Settled Debts

One of the biggest drawbacks of settling debts is dealing with the tax implications of having your debt cancelled. The IRS requires you to include cancelled debt as taxable income on your tax return and requires businesses to report cancelled debts over $ 600. If your creditor cancels at least $ 600 of debt, the IRS will know about it. They’ll be expecting you to claim this as income on your taxes. You could face an audit if you don’t include the cancelled debt on your tax return. Increasing your taxable income by adding in cancelled debt can decrease your tax refund – that’s if you still get a tax refund after increasing the amount of taxes you’re liable for. The worst-case scenario is that you end up with a tax … 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

How should i file my taxes going through a divorce and foreclosure?

My ex wife and I seperated 3/09 We both moved out and left the house go into foreclosure. I haven’t recieved any mail from the mortgage company it all goes to her. I have no idea what she’s doing I have no spoke with her, but i need to file my taxes. Do i file with my w-2s and not worry about any of the house stuff, and do i file married seperated or single? … Read entire article »

Filed under: Foreclosure Help

How to stop Bank Foreclosure because of back taxes?

I owe several years of back taxes. How do I stop bank foreclosure because of back taxes? I am paying the taxes as much as I can a month. … Read entire article »

Filed under: Foreclosure Help

Mortgage Debt Relief Act of 2007 – Lenders approved short sale, How do I ensure I don’t pay taxes?

Primary residence, first time buyer, purchased condo at $298K in August 2006. Had 80/20 option ARM, both lenders finally agreed to short sale. Property will be sold by end of this month for $145K. How do I make sure that I don’t end up paying taxes for the difference? Am I covered under the Debt Relief Act? … Read entire article »

Filed under: Debt Relief

I am refinancing. Is it better to pay property taxes on your own, or allow the mortgage compmay to do so?

I think it’s better for me financially to pay them on my own, correct? I used to have the mortgage do it because it’s hassle free. DeeDee, my taxes are paid quarterly. So I would need to have money set aside for when they’re due. Ah, I forgot to add that I have been asked if I am also paying for home insurance on my own. Shouldnt this be done by the mortgage company? … Read entire article »

Filed under: Mortgage Refinancing

If illegals are paying taxes with bogus S.S.N. is it fraud to collect a tax refund?

They say illegals are paying taxes but get no refunds, we know this is a lie.… Should a program like e-verify be used for tax returns? How can we stop these illegals from collecting refunds they don’t deserve? What do you think of this tax fraud. Did these illegals know what they were doing? I believe so. Drug raid uncovers massive tax fraud scheme By Lisa Rogers Times Staff Writer Published: Friday, February 5, 2010 at 6:01 a.m. An income tax fraud scheme discovered during a drug raid Thursday night is expected to lead to hundreds of thousands of dollars in illegal tax refunds. “I wouldn’t be surprised it went into the millions,” Etowah County Sheriff Todd Entrekin said during a news conference Friday. Agents went to a mobile home on Sligo Road, just … Read entire article »

Filed under: Mortgage Refinancing

short sale taxes on investment property, proving insolvency?

Hi, two months ago I did the closing on the short sale of an investment property I used to own. Prior to sale of the property, my net worth might have been about $10K in assets & $20K in a 401K account. The property was sell short by $110K. My question concers the tax liability on this. I think I was insolvent at the time of the closing, meaning that I would owe the IRS on taxes for this year, more than my total assets value. Right after the closing I started investing most of my cash in the stock market and I’ve made a few thousand dollars in profits. Are these post-short-sale winnings going to be affect my insolvency for the sale of the property? I … Read entire article »

Filed under: Insolvency

I have a question about income taxes for the past 2 years and refinancing my mortgage. ?

Me & my husband separated in the year 2006 and filed our taxes separately as well as the year 2007. We got back together in October 2007 and bought a house. Now I am trying to refinance and the bank wants copies of the past 2 years income taxes. Will it look bad on us that the past 2 years our taxes were filed separately? This is the way we were told to file but I dont want to mess up the chance to refinance. … Read entire article »

Filed under: Mortgage Refinancing

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