How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Robin D. Your Own Question

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7872
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I owned a house in NJ. The house was forclosed on. I recieved

Resolved Question:

I owned a house in NJ. The house was forclosed on. I recieved a form 2008
1999-A Acquition or Abandoment of Secured property.
#2 Balance of principal outstanding $ 845,522.56
#4 Fair market value as $100.

How can a mortague company legally say the house is only worth $100?
IRS said if I can prove that I did not recieve cash this debt can be relieved.
What documentation do I need so this be debt be relieved?
What recorse do I have?
Submitted: 4 years ago.
Category: Tax
Expert:  FiveStarLaw replied 4 years ago.
was the house your primary residence
Customer: replied 4 years ago.

Yes it was my primary residence.

Expert:  FiveStarLaw replied 4 years ago.
Hello,

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

It does not appear that you would be subject to taxation on the relief of indebtedness income. Although typically if the lender accepts less than what you owe on the full balance, this difference will become discharge of indebtedness income and it is taxed as “ordinary income” (See 26 U.S.C. § 61 and §§ 1001 through 1016).However The Mortgage Forgiveness Debt Relief Act of 2007 excludes from taxation discharges of up to $2 million of indebtedness that is secured by a principal residence and is incurred in the acquisition, construction or substantial improvement of the principal residence.
Customer: replied 4 years ago.
Yes I am aware as I said the irs agent said it could be forgiven. What I need to know is what forms ,documentation, prossess needs to be done to achieve that.
Expert:  FiveStarLaw replied 4 years ago.
Customer: replied 4 years ago.
Relist: Incomplete answer.
I asked what I needed to do to get to know the forms, process, and documentation to get the tax debt relieved. The lawyer only gave me the name of the statue not the proccess as asked for.
Expert:  Robin D. replied 4 years ago.

HelloCustomer

To request that your forgiveness of debt on your primary home be excluded from income you need to use Form 982 with your tax return. Do not include the forgiveness amount on your 1040 form.

If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.

The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b,if applicable,on Form 982.

 

Here ia a link to teh 982 Form that you can fill in and print or just print and enter by hand your indformation,

I sincerely XXXXX XXXXX will give you the information you need,

Customer: replied 4 years ago.

1.) The link did not show up could you resend the link.

 

2.) Does it matter that the fair market vale for a $895,00 home is listed at only $ 100?

TSince there is no way the fair market value is only $ 100

 

3) What verbadge do I need to say to IRS agent to get a second extension so as to get futher professional tax help, since I have realized that my efforts to do so have not prevailed.

 

You were much more helpfull than the other expert.

Thank you in advance.

Expert:  Robin D. replied 4 years ago.

Sorry about the link (and the spelling)

http://www.irs.gov/pub/irs-pdf/f982.pdf

 

The fair market value could be a typo, request a correction from the issuer of the 1099.

 

As far as an additional extension, you have until October 15th 2010 if you filed for an extension.

 

What you need to know is that if this was your personal residence you still have the $250000 exclusion if you lived in home for 2 out of the last 5 years that you owned it ($500,000 if you are married). This means that the Form 982 will take over for any amount of gain after your regular exclusion.

 

If you need tax help, any of the tax offices like H & R Block should be able to help you (for a price). There were so many of these for this past tax year that the people still working in the tax offices now should be well versed in how to handle this for you. Usually, only tax preparers that have a number of years experience are around after April 15th in the tax prep offices due to the complexity of the items you see after April 15th. Even though you have an extension till Oct 15th don't wait. There is nothing you could say after that date that would get you any more time.

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7872
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Robin D.
Robin D.
7314 Satisfied Customers
15years with H & R Block. Divisional leader, Instructor