[Chance the Gardener]

I filed. I bought a loose diamond from BlueNile.com about two years ago, still had the receipt. The claim filing process took about 10 minutes. I’m not holding my breath. The payout is fixed and is diluted by the total number of claims. The press has picked-up on the story and the settlement has been widely discussed. I would be tickled to get 10% – that would double what I expect from the stimulus package.

[Chance the Gardener]

I filed. I bought a loose diamond from BlueNile.com about two years ago, still had the receipt. The claim filing process took about 10 minutes. I’m not holding my breath. The payout is fixed and is diluted by the total number of claims. The press has picked-up on the story and the settlement has been widely discussed. I would be tickled to get 10% – that would double what I expect from the stimulus package.

[Chance the Gardener]

I filed. I bought a loose diamond from BlueNile.com about two years ago, still had the receipt. The claim filing process took about 10 minutes. I’m not holding my breath. The payout is fixed and is diluted by the total number of claims. The press has picked-up on the story and the settlement has been widely discussed. I would be tickled to get 10% – that would double what I expect from the stimulus package.

[Chance the Gardener]

I filed. I bought a loose diamond from BlueNile.com about two years ago, still had the receipt. The claim filing process took about 10 minutes. I’m not holding my breath. The payout is fixed and is diluted by the total number of claims. The press has picked-up on the story and the settlement has been widely discussed. I would be tickled to get 10% – that would double what I expect from the stimulus package.

[Chance the Gardener]

I filed. I bought a loose diamond from BlueNile.com about two years ago, still had the receipt. The claim filing process took about 10 minutes. I’m not holding my breath. The payout is fixed and is diluted by the total number of claims. The press has picked-up on the story and the settlement has been widely discussed. I would be tickled to get 10% – that would double what I expect from the stimulus package.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Refi is not purchase money

Unequivocally, proceeds from a refinance loan are not purchase money. Lenders of purchase money are required to disclose the non-recourse nature of a loan in California. Refinance lenders are not required to inform you that refinancing forfeits your protection under Civil Code section 580b. Here is a link to a law professor's article calling for a correction to this problem. Note in the conclusion that the least likely to succeed solution is to extend 580b protection to borrowers who refinanced. http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=george_kuney

[Chance the Gardener]

Refi is not purchase money

Unequivocally, proceeds from a refinance loan are not purchase money. Lenders of purchase money are required to disclose the non-recourse nature of a loan in California. Refinance lenders are not required to inform you that refinancing forfeits your protection under Civil Code section 580b. Here is a link to a law professor's article calling for a correction to this problem. Note in the conclusion that the least likely to succeed solution is to extend 580b protection to borrowers who refinanced. http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=george_kuney

[Chance the Gardener]

Refi is not purchase money

Unequivocally, proceeds from a refinance loan are not purchase money. Lenders of purchase money are required to disclose the non-recourse nature of a loan in California. Refinance lenders are not required to inform you that refinancing forfeits your protection under Civil Code section 580b. Here is a link to a law professor's article calling for a correction to this problem. Note in the conclusion that the least likely to succeed solution is to extend 580b protection to borrowers who refinanced. http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=george_kuney

[Chance the Gardener]

Refi is not purchase money

Unequivocally, proceeds from a refinance loan are not purchase money. Lenders of purchase money are required to disclose the non-recourse nature of a loan in California. Refinance lenders are not required to inform you that refinancing forfeits your protection under Civil Code section 580b. Here is a link to a law professor's article calling for a correction to this problem. Note in the conclusion that the least likely to succeed solution is to extend 580b protection to borrowers who refinanced. http://works.bepress.com/cgi/viewcontent.cgi?article=1000&context=george_kuney

[Chance the Gardener]

Assessor’s burden:

Bugs, I agree, but isn’t it the assessor’s burden to show that the purchase price is not the full cash value? I rely on section 110 of the California Revenue and Taxation code:

“(b) For purposes of determining the “full cash value” or “fair market value” of real property… being appraised upon a purchase, “full cash value” or “fair market value” is the purchase price paid in the transaction unless it is established by a preponderance of the evidence that the real property would not have transferred for that purchase price in an open market transaction. The purchase price shall, however, be rebuttably presumed to be the “full cash value” or “fair market value” if the terms of the transaction were negotiated at arms length between a knowledgeable transferor and transferee neither of which could take advantage of the exigencies of the other…“

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