Page 1 of 1
LAM = Debt Forgiveness & Tax Consequences
Posted: Fri Mar 01, 2013 2:46 pm
by Yahoo Bot
Your client needs to consult with an accountant to answer the tax
question. I am not an accountant, however the Mortgage Relief Act of
2007 was extended through 2013.
Shannon A. Doyle
Attorney at Law
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791-1600
Tel: (626) 646-2555
Fax: (626) 332-8644
www.blclaw.com
The post was migrated from Yahoo.
LAM = Debt Forgiveness & Tax Consequences
Posted: Fri Mar 01, 2013 2:18 pm
by Yahoo Bot
Dear Members:
I have a client in an active 13 and in 2009 we obtained an order on our LAM. We have now gotten an offer from WF offering to forgive the debt (same as the LAM).
My question is: What are my clients' tax consequences, proceeding to termination of the 13 versus accepting the offer to forgive.
The Mortgage Relief Actof 2007 provides for the reduction of any amounts reported via 1099, but this terminated in 2012. I believe my clients would be safe if they proceed with the active 13and not be subject to taxes on the LAM. However, would they have tax consequences if they accept the offer?
As always any input is greatly appreciated.
Silvia
The post was migrated from Yahoo.