Democrat and Independent Thinker..."The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself." -Nietzsche

Commenting on many things, including..."A government more dangerous to our liberty, than is the enemy it claims to protect us from." - Keith Olbermann

Monday, August 20, 2007

IRS Piles On

For those who struggle to pay their bills, who watch their housing payments rise out of reach with their adjustable-rate mortgages, who lose a job or who fall victim to illness, losing one’s home can feel like hitting bottom. But one more financial indignity may await as the fallout from the great housing boom ripples across the United States.[...]

Notices of unpaid taxes, unanticipated and little understood, will probably multiply as more people fall behind on their mortgages, said Ellen Harnick, senior policy counsel at the Center for Responsible Lending, a nonpartisan research and policy center in Durham, N.C.

Foreclosure is one way that beleaguered homeowners can fall into this tax trap. The other is when homeowners are forced to sell their homes for less than the value of the mortgage. If the lender forgives that difference, they are liable for income taxes on that amount.

The 1099 shortfall, as it is called, stems from an Internal Revenue Service policy that treats forgiven debt of all types as income even if the taxpayer has nothing tangible to show for it, unless the debt is canceled through bankruptcy.

7 comments:

Affordable Life Insurance Quotes said...

Hey BlueKat, Foreclosure essentially hurts homeowners who are not exactly aware of the intricacies of insurance.

Affordable Payday Loans said...

one more financial indignity may await link is dead.

paul said...

They are so screwed (the ARM victims, I mean). We need a peasant revolution in this country. Have you heard of Dead Peasants Insurance? It is an insurance policy that your boss can take out on you, regardless of the industry you work in, wherein they collect on the policy if you die. You, or rather your family, do not get to collect.

jOeRzOe said...

This is cool blogs

http://x-loan.blogspot.com -->Student Loan

http://refinancial.blogspot.com -->Mortgage Refinance

Anonymous said...

好秘书 中国呼吸网 肿瘤网 中国皮肤网 癌症康复网 工作总结 演讲稿 竞聘演讲 就职演讲 比赛演讲 征文演讲 节日演讲 演讲技巧 方案制度 工作意见 活动策划 工作方案 整改方案 实施方案 企划文案 销售方案 培训方案 应急预案 规章制度 法律法规 材料大全 事迹材料 先进事迹 个人事迹 申报材料 学习材料 考察材料 经验材料 交流材料 个人鉴定 自我鉴定 模板范例 技巧经验 工作计划 工作规划 年度工作计划 学校工作计划 个人工作计划 财务工作计划 团委工作计划 工会工作计划 单位工作计划 德育工作计划 教学工作计划 班主任工作计划 党支部工作计划 先教活动 整改措施 剖析材料 反腐倡廉 三农问题 和谐社会 三个代表 八荣八耻 先进性教育 党团工会 党团知识 党员相关 党会发言 党性分析 民主生活会 入党志愿书 入党申请书 入团申请书 转正申请书 公文写作 板报设计 办公表格 谈判技巧 外贸信函 公文 秘书 广告启事 通知 求职指导 求职信 自荐信 简历封面 简历模板 简历范文 简历制作 英文简历 面试技巧 学术论文 企业文化 毕业论文 经济工作 财经金融 城建环保 教育教学 工矿企业 党政司法 合同 合同知识 买卖合同 承包合同 投资合同 招标合同 建设工程 劳动合同 运输合同 房屋合同 借款合同 销售合同 租赁合同 保险合同 其它合同 秘书 述职报告

Polzoo said...

Hi there,

I think your blog is interesting. I'd like to invite you to join our new online community at polzoo.com. We are a user generated political editorial and social network. We also choose from amongst our own bloggers to be featured on the front page. I think your voice would be a great addition to the site. Come check us out.

Polzoo

Sharon Combs said...

Are you getting your comments from that paid comment generator?

http://commentcc.blogspot.com