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It was a HELOC loan. We used $100k for improvements, but the remaining amount for other purchases $135k. We were forgiven $183k.
Thank you, XXXXX XXXXX a HELOC loan. We used $100k for improvements. the remaining $135k for other purchases. We were forgiven $183.5k.
So with the $100k improvements is 42.55% of the loan amount. Does that mean of the $183.5k foregiven debt, $78.1k is no taxable?
Thank you so much! One more quick question:
On the Insolvency form: Part III Line 3b & 3c:
3b. Mortgages on real property, nonrecourse:
3c. Mortgages on real property, recourse:
We had a primary loan paid in full.
Part of the secondary load paid off, and the remaining forgiven.
Our current home has a primary loan.
Where do I put all three mortgages nonrecourse or recourse?
Homes are in CA. For Federal taxes, same thing?
You're very welcome. Thank you for your quick responses. Have a lovely day!