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REPORT COPYRIGHT VIOLATION IN REPLY
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Message Subject
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Camp Fema Debtors Prison?
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Poster Handle
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Anonymous Coward |
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Post Content
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Whatever debt is forgiven is reported to the IRS and is classified as income, so you are liable for the taxes on that money.
There is some grace though.
If at the time of the discharge you are upside down, IE total net worth is less than what you owe including your house, mortgage or whatever you are relieved from paying taxes on the $ forgiven, but it is tied to your property somehow and I dont fully understand that part.
IE if the debt is forgiven and you are exempt from paying taxes on that now, and you sell your house in the future the sales amount is increased by the amount of the dept previously forgiven so you will get hit with a tax at that time if you have any equity.
I think there is a time period involved, but not sure what it is.
Quoting: Anonymous Coward 16094023 This is a credit card debt from the late 1990's and the letter states pay it by June 13th or penalties start accruing. There was no warning or forehand knowledge whats so ever. Mark my words, this is coming to a shit load of people soon. I just googled it and saw article after article from people getting these letters and they don't even remember the debt. So how do you compute what you owe on the 600?
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