Foreclosure of your home=income to you!!!???
July 4, 2008 7:09am CST
That's right folks. The hundreds of thousands Americans that cannot afford to make their mortgage payments are taxed by the good old IRS (U.S. Government)when they are foreclosed upon. The tax is anywhere from 10% to 35%, depending on the "income" or balance owed the lender. This U.S. government considers it income when one loses their house! Talk about adding insult to injury! Even when you do a short sale, which is selling the house for less than the mortgage owed, if you sell it for less you are still taxed on the leftover amount owed the lender. It's no wonder so many people just give up their lives and dissappear off the map or become homeless! This is a "free" country, as long as you pay your taxes. Otherwise, you may get more jail time than a murderer! It's no wonder why I have several neighbors from foreign countries that have 5 families living in a one family home!! This government is telling people they are trying to work on helping people on the verge of foreclosure, but don't you think they should start by changing this ridiculous tax law and stop going after people, mostly middle income, that have lost their homes and don't have a pot in which to pee? PEACE
26 Nov 08
I believe the tax code you're pertaining to is called a 1099C, its when a house gets foreclosed and the lender files a tax write off because they lossed money on the bad investment. The bad thing here is the poor foreclosed family gets to pay for the missed taxes and the loss of the lender. But you can remove that and avoid totally paying tax money for that when you get Foreclosed (its rediculous in the first place) you need to file a 89-2 its a tax write off for the homeowner who got foreclosed and will drop all the taxes associated with teh foreclosed home. For more info read up on it at www.foreclosurepreventionagency.org