Thursday, March 17, 2011

Canceled mortgage debt and taxes: Passing the test on canceled mortgage debt has tax rewards - latimes.com

Canceled mortgage debt and taxes: Passing the test on canceled mortgage debt has tax rewards - latimes.com

1 comment:

  1. MORE ON CANCELED DEBT AND TAXES:

    The IRS highlighted some other key points in its guidance:

    •Mortgage cancellation relief is capped at $2 million for married taxpayers, $1 million for married owners filing separately.

    • Anyone who has had mortgage debt canceled as part of a loan modification or foreclosure should go to IRS.gov and download Form 982 and IRS Publication 4681 for additional filing details. Or they can call (800) TAX-FORM to request copies. Lenders who write off unpaid mortgage balances typically provide borrowers with a year-end IRS form 1099-C cancellation of debt statement, including the amount of the loan forgiven and the fair market value of the property.

    If you have had mortgage debt canceled but haven't received a 1099-C from your lender, request it to avoid federal tax hassles.

    kenharney@earthlink.net.

    Distributed by Washington Post Writers Group.

    Copyright © 2011, Los Angeles Times

    ReplyDelete