Central District Consumer Bankruptcy Attorney's Association

Thanks David!
To: cdcbaa@yahoogroups.com
Sent: Friday, February 6, 2009 10:31:31 AM GMT -08:00 US/Canada Pacific
Subject: RE: [cdcbaa] Re:1099 from short sale
If second forecloses, then they waive deficiency, it's not debt forgiveness. Issuance of 1099 was improper. You may be talking about situation where first has foreclosed leaving second as "sold out junior". Second can then forgive and issue 1099, but taxability is based on 26 U.S.C. 108 - recommended reading.
David A. Tilem
Certified Bankruptcy Specialist *
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201 , Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
n
att Resnik
Sent: Friday, February 06, 2009 10:05 AM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Re:1099 from short sale
I am not certain since I am no tax expert----however, I have had no less than a dozen people come in post foreclosure (about a year ago) where the Second did foreclose and issued a 1099 for the deficiency difference...
So my opinion --- maybe the accountant has some type of evidence to support his finding?
To: cdcbaa@yahoogroups.com
Sent: Friday, February 6, 2009 9:39:16 AM GMT -08:00 US/Canada Pacific
Subject: [cdcbaa] Re:1099 from short sale
I had an accountant tell me that the IRS will not consider the sold out junior lien as taxable income (regardless of the bk) even if it was a cash out loan to the borrower, IF the property was the borrowers residence. That was news to me. I have not verified the accuracy of that information. I don the IRS/tax return preparation goes. Does anyone have any opinion on the accuracy of the advice I got from that accountant on this issue?
-Jeffrey B. Smith
CURD, GALINDO & SMITH, L.L.P.
301 East Ocean Blvd. #1700
Long Beach , CA 90802
(562) 624-1177
(562) 624-1178 fax
(310) 993-6560 cellular
Matthew D. Resnik
Attorney at Law
Simon and Resnik LLP
449 S. Beverly Drive
Suite 210
Beverly Hills, Ca
90212
T:310-788-9777
F: 310-788-0017
Matt@resniklaw.com
Matthew D. Resnik
Attorney at Law
Simon and Resnik LLP
449 S. Beverly Drive
Suite 210
Beverly Hills, Ca
90212
T:310-788-9777
F: 310-788-0017
Matt@resniklaw.com
p { margin: 0; }
The post was migrated from Yahoo.

I am not certain since I am no tax expert----however, I have had no less than a dozen people come in post foreclosure (about a year ago) where the Second did foreclose and issued a 1099 for the deficiency difference...
So my opinion --- maybe the accountant has some type of evidence to support his finding?
To: cdcbaa@yahoogroups.com
Sent: Friday, February 6, 2009 9:39:16 AM GMT -08:00 US/Canada Pacific
Subject: [cdcbaa] Re:1099 from short sale
I had an accountant tell me that the IRS will not consider the sold out junior lien as taxable income (regardless of the bk) even if it was a cash out loan to the borrower, IF the property was the borrowers residence. That was news to me. I have not verified the accuracy of that information. I don the IRS/tax return preparation goes. Does anyone have any opinion on the accuracy of the advice I got from that accountant on this issue?
-Jeffrey B. Smith
CURD, GALINDO & SMITH, L.L.P.
301 East Ocean Blvd. #1700
Long Beach , CA 90802
(562) 624-1177
(562) 624-1178 fax
(310) 993-6560 cellular
Matthew D. Resnik
Attorney at Law
Simon and Resnik LLP
449 S. Beverly Drive
Suite 210
Beverly Hills, Ca
90212
T:310-788-9777
F: 310-788-0017
Matt@resniklaw.com
p { margin: 0; }I am not certain since I am no tax expert----however, I have had no less than a dozen people come in post foreclosure (about a year ago) where the Second did foreclose and issued a 1099 for the deficiency difference...So my opinion --- maybe the accountant has some type of evidence to suppo<jsmith@cgsattys.com>To: cdcbaa@yahoogroups.comSent: Friday, February 6, 2009 9:39:16 AM GMT -08:00 US/Canada PacificSubject: [cdcbaa] Re:1099 from short sale
I had an accountant tell me that the IRS will not consider
the sold out junior lien as taxable income (regardless of the bk) even if it
was a cash out loan to the borrower, IF the property was the borrowers
residence. That was news to me. I have not verified the accuracy of
that information. I dont know, if its true, how you deal
with the 1099 as far as the IRS/tax return preparation goes. Does anyone
have any opinion on the accuracy of the advice I got from that accountant on
this issue?

-Jeffrey B. Smith
CURD, GALINDO & SMITH, L.L.P.
301 East Ocean Blvd.
#1700
Long Beach,
CA 90802
(562) 624-1177
(562) 624-1178 fax
(310) 993-6560 cellular

-- Matthew D. ResnikAttorney at LawSimon and Resnik LLP449 S. Beverly DriveSuite 210Beverly Hills, Ca 90212T:310-788-9777F: 310-788-0017Matt@resniklaw.com

The post was migrated from Yahoo.