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Help me out guys, I need some info

Okay, I consider myself awake, knowledgeable, and I thought I was pretty good at keeping up with all the shenanigans going on in this land of tryanny, but I missed a biggie. I just learned that a co-worker at my husbands workplace got a 1099 IRS form claiming over a $100,000 as taxable income because of a short sale on his home. In other words, because the bank wrote off, or as they like to say "forgave" the outstanding balance owed from the short sale; the amount they wrote off is considered income, WTF? This just floored me, has anybody else ran into this? Geez, there is no end to screwing homeowners is there. If anyone knows anything about the IRS doing this or has had experience with this let me know because like I said, I totally missed this one. I never read about this in all the articles I've read about foreclosures, short sales etc.

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So?

Just discharge the amount due in the I.R.S. statement. It only costs the price of an envelope and the certified mail postage. Simple. Use the money saved for a neighborhood barbecue so you can tell everyone how you did it.

Yep, that is pretty much how

Yep, that is pretty much how it works. Whenever debts are forgiven the government views it as an income and they want their piece of that income. It's a shame that a lot of people don't realize that after debts are settled, etc, the government comes marching in wanting their taste of the action. This is the same with settling credit card debts as well. As far as I know, even after some bankruptcies the government wants their piece from the debt that was wiped clean.

...

Yes, it is considered income from discharge of indebtedness

These are pretty cut and dried issues, but if they are seeking legal counsel, Michael Minns of Texas has I believe a perfect record against the IRS. If anyone can help that co-worker on this issue it would be him. He's quite famous in patriot circles. If not, he would be able to give you an honest opinion on how to handle the issue, and refer you to someone more local to best handle that.

chink, Im a Realtor when I am not a potter,

and yes I heard of this and that is why so many have trashed their houses and left it for the bank.

This whole racket is extremely vexing. This is what it looks like when our government strays outside the Constitution.

Just wait till all others who have sold their homes this past year via 'short sale' and weren't told this would happen!!!!

I have had enough of these gangsters and have joined forces with Articles of Freedom.

I would encourage you to join with us. United as an American coalition we will take them on in a legal, non-violent manner.

Check out rule of law radio-

Check out rule of law radio- they have some great shows that talk about debt and foreclosures and what you can do. www.ruleoflawradio.com If I lose my house, I am going off the grid anyway so Uncle Same and the Tax Man can k*ss my gritts! They will never find me unless we go to rfid chips.

There is no Left or Right -- there is only freedom or tyranny. Everything else is an illusion, an obfuscation to keep you confused and silent as the world burns around you." - Philip Brennan

"Invest only in things that you can stand in front of and pr

Correct.

A family member did a short sale and this is the way he was told the "forgiven" debt will be handled. Nothing like kickin' 'em when thier down.

"It’s not like I’m just trying to win and get elected. I’m trying to change the course of history." ~Ron Paul

getting some sleep

I'll check back in the a.m. and see if anyone has some links or info on any articles where I can check this out. I know better then to ask,"can they do this?" as I know they can and do anything they darn well please. No wonder they are buying up shotguns. How the heck are people supposed to cough up that kind of money to pay a huge tax bill. I know this guy, he makes about $45,000 a year, maybe a little more, so now his taxable income jumps to over $145,000, that is just plain wrong. In bankruptcy the amount that is discharged isn't considered taxable income. This is just crazy.

chinkadaro

Yes- that how a foreclosure

Yes- that how a foreclosure works with the IRS. In the olden days, the proprty always sold, so you would get taxed on the differnce between what you owed versus how much the property sold for. If it was a negative amount or a loss for the bank.

If the house sells, you will only be liable for the differnce-assuming it sells or when it sells.

I lost my job last year, and have enough money to hold out for another 2 years (w/o unemployment benefits) assuming Inflation does't start kicking in- which I believe we will see big time after the elections in November.

There is no Left or Right -- there is only freedom or tyranny. Everything else is an illusion, an obfuscation to keep you confused and silent as the world burns around you." - Philip Brennan

"Invest only in things that you can stand in front of and pr

I thought foreclosure was

I thought foreclosure was considered different then short sale. Man, you just can't keep with everything. Thanks all of you for your posts. I'll check back in the a.m.

chinkadaro

Local radio consumer advocate...

has been talking about this for ages.

IRS = I Represent Satan

THE MORE I LEARN ABOUT GOVERNMENT
THE MORE I LOVE MY GUNS
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