Short Sales Will Have Increased Tax Consequences Starting In 2013 An important tax provision that allows underwater homeowners to short sell their home without tax consequences will expire at the end of this month. Earlier this year I wrote about this tax provision. You can review that article here. Briefly stated, any discharge of indebtedness [...]
Tax Issues
An Expiring Tax Cut that matters to Underwater Homeowners
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There is lots of talk about expiring tax cuts; Bush tax cuts, payroll tax cuts but there is an expiring tax provision no one seems to be talking about, the tax provision that exempts unpaid mortgage arrears on primary residences that are subject to foreclosure, short sale or debt forgiveness. One of the things I [...]
IRS Beats Debtor to the Punch; Assessed Taxes Not Dischargeable
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Filing timely tax returns is key if you wish to discharge tax debt in bankruptcy It is possible to discharge income tax debt in bankruptcy, however, not all taxes are eligible and timing plays a very important role. If you’re anticipating tax troubles on the horizon, it is always best to go ahead and file [...]
Debtor Argues Tax Refund Not Part of Bankruptcy Estate
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Tax Refunds are Vulnerable in Bankruptcy We’ve said it time and again on the forum, tax refunds are the number one asset that trustees routinely take from debtors. Exemption laws in most states only go so far to protect cold hard cash and anything over and above your state’s designated exemption is fair game for [...]
IRS Sanctioned for Willful Violation of Discharge Order
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When Creditors Ignore the Bankruptcy Discharge Creditors who attempt to collect on debts that have been discharged in bankruptcy often find themselves in serious hot water with the Bankruptcy Court. Bankruptcy judges take the discharge order very seriously and will dish out punishment to those who ignore its prohibitions against continued collection efforts. As Nebraska [...]
Will I Lose My Tax Refund if I File Bankruptcy?
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‘Tis the season when bankruptcy trustees are taking tax refunds. Potential tax refunds MUST be disclosed on your petition just like your couch and car. Not disclosing your State and Federal tax refund is often a sure way to forfeit your tax refund. The problem with tax refunds is usually there is no specific exemption [...]
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