Debt Relief Under Federal Supervision [mortgagedealstips.blogspot.com]
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mortgagedealstips.blogspot.com Leno's "Video Metaphor" For The Federal Mortgage Relief Plan
Florida's leading housing agency will more than double the amount of federal mortgage assistance it provides to unemployed homeowners who have fallen behind on their loan payments.The state has. Florida eases rules for mortgage aid
A debt relief, the "qualified farm debt," the IRS can receive income subject to income tax will be exempted.The debt ratio will be as qualified farm debt, if it that were directly related to the operation of a farm and at least 50% of your total gross revenue for the three years before the debt relief from a farm.If the cancellation of qualified debt to exclude from your taxable income is the amount you transfer is set to exclude "tax attributes" and the basis of the property you use in your farm.
Normally, the debt relief under federal supervision income tax if you are not bankrupt or insolvent. But according to the Mortgage Debt Counselors Act of 2007 taxpayer relief from foreclosure with the income tax obligation debt on their principal residence with that mortgage debt reduced through restructuring and a mortgage that is given here.This relief applies to debt forgiven from 2007 to 2012 to $ 2,000,000.
There are other types of exemption from income tax on debt relief for the farmers. So the amount of debt you can exclude is limited to the sum of these amounts. Tax attributes include an operating loss for the current year and any net operating loss carry us balance from previous years, and any net capital loss for the current year and carried over from previous years.
Tax Internet and a general business credit carryover passive activity loss carryforward, foreign tax credit and minimum tax credit carryover at the beginning of the following year, each multiplied by 3 to determine the limit on the debt exclusion.The loan must be a person or entity that, due to "actively and regularly engaged in the business of lending".This includes the U.S. Ministry of Agriculture and all state, regional or local authority.
A loan from a family member of the person you sold the property, or by a person who receives a fee from your investment in the property does not qualify for this tax relief on debt relief. Recommend Debt Relief Under Federal Supervision Issues
Question by : Does the state of Virginia tax forgiven mortgage debt? If so, does the state follow the guidelines of the federal Mortgage Forgiveness Debt Relief Act and exempt some mortgage debt forgiveness from taxation? I have not had any mortgage debt forgiven yet -- I am doing some preliminary research to see what effect a short sale of my primary residence would have. I am confident that, if my short sale winds up successful, that I would get a 1099-C for the forgiven amount of the mortgage and would qualify on my federal taxes for the MFDRA exemption. What I cannot figure out nor find online is whether the state of Virginia taxes forgiven debt, let alone whether Virginia, like California, is exempting mortgage debt forgiveness. I do understand how debt forgiveness as income works tax-wise, at least when it comes to federal taxes. What I have been unable to figure out is how it would work out on my Virginia state income taxes. Also, do I understand how Virginia allows for filing of deficiency judgments for short sales/foreclosures/etc. The MFDRA doesn't have anything to do with that -- if the bank agrees to forgive the debt, they can't very well turn around and ask a judge for a deficiency judgment against me on a debt they agreed to forgive! In my hypothetical circumstance, I'm assuming that I'd agree to a short sale only in the circumstance that the bank would be writing off (forgiving) the difference between the sale price and my mortgage balance. Best answer for Does the state of Virginia tax forgiven mortgage debt?:
Answer by thegreatone
Every state taxes everything.
Answer by the tax lady
Call the state. I've been looking at the web and can't find a good answer. When you call, be ready to tell them if you have left the house (loan modifications are handled differently); whether or not you have received a 1099-C. A 1099-A from a foreclosure is NOT a 1099-C.
Answer by Kevin Williams
I dont think you understand this federal act. This act only authorizes the IRS to allow your bank to forgive you for the mortgage deficiency. If your lender decides to sue you for the deficient amount of your mortgage this statute does not exempt you from the penalty. In the state of Virginia the lender is allowed to sue or forgive you for the deficiency. To review the foreclosure laws in your state you can clich the link below and select you state. You can also select "additional foreclosure facts" on the same link and click you state. http://www.worldclassmemberservices.com/ForeclosureLaws.html
Answer by hrblockerrolquinn
Dear J: Seems like we're having trouble understanding your issue. It seems VA is the question and the best way to resolve this is to look at VA dept of revenue web site and look to a section on conformity. Most sates do not conform in at least some areas. If it is not apparent look at filing forms to see if a VA form 982. This is the form used on Fed returns to exempt the 1099-C income. My state conforms to the Federal rules. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
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