Tax Implications of “Walking Away”?

[moneymaker]

Don’t feel sorry for the “banks” at all. I think there was a lot of mutual hand greasing going on in the broker business. What about PMI? second mortgages? I just hope the banks/companies are man enough to pay their taxes on all those repos they now are holding onto. I guess people like McCain have 5 years to not pay there taxes before it gets auctioned off. I am so glad my offers were never accepted, Hallelujah! I remember hearing from multiple real estate agents “oh just refinance after the reset” and I remember thinking at the time “yeh right” knowing full well interest rates could not stay down forever.

[Anonymous]

Here are the tax implications of walking away.

The government enacted a law in 2007 that expires in 2010. If your home is foreclosed on the difference between the appraised value (or sales price) the bank establishes when they take possession of the property and the amount owed on the note if considered taxable income. However, the law which was enacted allows homeowners to subtract the amount of the original loan amount plus any refinanced amounts that were used to improve the home from the taxable income. For all those interest only and neg am loans they should consider walking away from the home. This law has a limit of 2 million for married couples and 1 mil. for singles. It also only applies to properties that are a primary residence.

[Anonymous]

Here are the tax implications of walking away.

The government enacted a law in 2007 that expires in 2010. If your home is foreclosed on the difference between the appraised value (or sales price) the bank establishes when they take possession of the property and the amount owed on the note if considered taxable income. However, the law which was enacted allows homeowners to subtract the amount of the original loan amount plus any refinanced amounts that were used to improve the home from the taxable income. For all those interest only and neg am loans they should consider walking away from the home. This law has a limit of 2 million for married couples and 1 mil. for singles. It also only applies to properties that are a primary residence.

[Anonymous]

Here are the tax implications of walking away.

The government enacted a law in 2007 that expires in 2010. If your home is foreclosed on the difference between the appraised value (or sales price) the bank establishes when they take possession of the property and the amount owed on the note if considered taxable income. However, the law which was enacted allows homeowners to subtract the amount of the original loan amount plus any refinanced amounts that were used to improve the home from the taxable income. For all those interest only and neg am loans they should consider walking away from the home. This law has a limit of 2 million for married couples and 1 mil. for singles. It also only applies to properties that are a primary residence.

[Anonymous]

Here are the tax implications of walking away.

The government enacted a law in 2007 that expires in 2010. If your home is foreclosed on the difference between the appraised value (or sales price) the bank establishes when they take possession of the property and the amount owed on the note if considered taxable income. However, the law which was enacted allows homeowners to subtract the amount of the original loan amount plus any refinanced amounts that were used to improve the home from the taxable income. For all those interest only and neg am loans they should consider walking away from the home. This law has a limit of 2 million for married couples and 1 mil. for singles. It also only applies to properties that are a primary residence.

[Anonymous]

Here are the tax implications of walking away.

The government enacted a law in 2007 that expires in 2010. If your home is foreclosed on the difference between the appraised value (or sales price) the bank establishes when they take possession of the property and the amount owed on the note if considered taxable income. However, the law which was enacted allows homeowners to subtract the amount of the original loan amount plus any refinanced amounts that were used to improve the home from the taxable income. For all those interest only and neg am loans they should consider walking away from the home. This law has a limit of 2 million for married couples and 1 mil. for singles. It also only applies to properties that are a primary residence.

[Author]

Posts