“Strategic” Default Question

[briansd1]

I’m thinking that strategic default might be a good estate planning tool and to transfer money from one party to another, free of taxes, as long as the tax code allows it.

[SD Realtor]

Sure Brian, why don’t you join the poster who posted a few months ago about living like a rockstar while he defaulted. Sounds like a good idea. You may wanna get some credit cards and run them to the max and default on those as well.

Definitely a good estate planning tool.

[SD Realtor]

Sure Brian, why don’t you join the poster who posted a few months ago about living like a rockstar while he defaulted. Sounds like a good idea. You may wanna get some credit cards and run them to the max and default on those as well.

Definitely a good estate planning tool.

[SD Realtor]

Sure Brian, why don’t you join the poster who posted a few months ago about living like a rockstar while he defaulted. Sounds like a good idea. You may wanna get some credit cards and run them to the max and default on those as well.

Definitely a good estate planning tool.

[SD Realtor]

Sure Brian, why don’t you join the poster who posted a few months ago about living like a rockstar while he defaulted. Sounds like a good idea. You may wanna get some credit cards and run them to the max and default on those as well.

Definitely a good estate planning tool.

[SD Realtor]

Sure Brian, why don’t you join the poster who posted a few months ago about living like a rockstar while he defaulted. Sounds like a good idea. You may wanna get some credit cards and run them to the max and default on those as well.

Definitely a good estate planning tool.

[Coronita]

The reason why I’m asking this question is (more or less in theory)…

Is this a way to assets to a relative, skipping estate taxes. I understand it’s a naive question, but just curious. Typically, loan forgiveness is a taxable event. But currently, aren’t they more or less not taxable in the current climate? Or am I wrong about this.

Not suggesting to do this is a good thing, just trying to understand.

[Coronita]

The reason why I’m asking this question is (more or less in theory)…

Is this a way to assets to a relative, skipping estate taxes. I understand it’s a naive question, but just curious. Typically, loan forgiveness is a taxable event. But currently, aren’t they more or less not taxable in the current climate? Or am I wrong about this.

Not suggesting to do this is a good thing, just trying to understand.

[Coronita]

The reason why I’m asking this question is (more or less in theory)…

Is this a way to assets to a relative, skipping estate taxes. I understand it’s a naive question, but just curious. Typically, loan forgiveness is a taxable event. But currently, aren’t they more or less not taxable in the current climate? Or am I wrong about this.

Not suggesting to do this is a good thing, just trying to understand.

[Coronita]

The reason why I’m asking this question is (more or less in theory)…

Is this a way to assets to a relative, skipping estate taxes. I understand it’s a naive question, but just curious. Typically, loan forgiveness is a taxable event. But currently, aren’t they more or less not taxable in the current climate? Or am I wrong about this.

Not suggesting to do this is a good thing, just trying to understand.

[Coronita]

The reason why I’m asking this question is (more or less in theory)…

Is this a way to assets to a relative, skipping estate taxes. I understand it’s a naive question, but just curious. Typically, loan forgiveness is a taxable event. But currently, aren’t they more or less not taxable in the current climate? Or am I wrong about this.

Not suggesting to do this is a good thing, just trying to understand.

[Coronita]

[quote=Cube]If the hypothetical goal here is to have person A effectively buy person X a house, why ever foreclose or forgive the loan? Why not just have person X be in default to person A indefinitely? In fact, why not have person X pay the interest-only amount to person A (while falling in arrears on the full payment) and write of the payments against taxable income? And person A can probably gift most / all of that money back to person X (assuming spouses for each are playing too).[/quote]

I’m more interested in what happens before a distribution of an estate which includes the loan. It would do no good if the beneficiary loan that also owes the debt.

[Coronita]

[quote=Cube]If the hypothetical goal here is to have person A effectively buy person X a house, why ever foreclose or forgive the loan? Why not just have person X be in default to person A indefinitely? In fact, why not have person X pay the interest-only amount to person A (while falling in arrears on the full payment) and write of the payments against taxable income? And person A can probably gift most / all of that money back to person X (assuming spouses for each are playing too).[/quote]

I’m more interested in what happens before a distribution of an estate which includes the loan. It would do no good if the beneficiary loan that also owes the debt.

[Coronita]

[quote=Cube]If the hypothetical goal here is to have person A effectively buy person X a house, why ever foreclose or forgive the loan? Why not just have person X be in default to person A indefinitely? In fact, why not have person X pay the interest-only amount to person A (while falling in arrears on the full payment) and write of the payments against taxable income? And person A can probably gift most / all of that money back to person X (assuming spouses for each are playing too).[/quote]

I’m more interested in what happens before a distribution of an estate which includes the loan. It would do no good if the beneficiary loan that also owes the debt.

[Coronita]

[quote=Cube]If the hypothetical goal here is to have person A effectively buy person X a house, why ever foreclose or forgive the loan? Why not just have person X be in default to person A indefinitely? In fact, why not have person X pay the interest-only amount to person A (while falling in arrears on the full payment) and write of the payments against taxable income? And person A can probably gift most / all of that money back to person X (assuming spouses for each are playing too).[/quote]

I’m more interested in what happens before a distribution of an estate which includes the loan. It would do no good if the beneficiary loan that also owes the debt.

[Author]

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