http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/ Just another WordPress weblog Sun, 28 Feb 2010 07:02:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/comment-page-1/#comment-4154 EXSCredi… Sun, 07 Feb 2010 08:25:38 +0000 http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/#comment-4154 Yes, you will have to pay federal and state income tax. You had the money in your hands, you have not paid taxes on it yet. Yes, you will have to pay federal and state income tax. You had the money in your hands, you have not paid taxes on it yet.

]]> http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/comment-page-1/#comment-4153 the tax lady Sun, 07 Feb 2010 07:47:33 +0000 http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/#comment-4153 The tax was eliminated thru the end of 2009. Your timing is good. No more "forgiveness of debt" on your Form 1040 if it was your personal residence. Same for modifications.. The tax was eliminated thru the end of 2009. Your timing is good. No more “forgiveness of debt” on your Form 1040 if it was your personal residence. Same for modifications..

]]> http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/comment-page-1/#comment-4152 John D Sun, 07 Feb 2010 07:40:42 +0000 http://www.xtacash.com/how-does-a-loan-modification-effect-your-income-during-tax-time-does-the-company-write-off-the-loss/#comment-4152 See IRS publication 4681. You will get a 1099-C if the loan modification writes off any part of your loan balance. Depending on when the modification occurs, you may be able to postpone including the money as income on form 982. (If the house ever recovers in value, you would have to include the money as income in the year you sell.) See IRS publication 4681. You will get a 1099-C if the loan modification writes off any part of your loan balance.
Depending on when the modification occurs, you may be able to postpone including the money as income on form 982. (If the house ever recovers in value, you would have to include the money as income in the year you sell.)

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