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Fasfeed
Joined: 06 Feb 2008
Fasfeed's page
Posts: 87
3244 Magic Points
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Subject: Can you negotiate 1099-c
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Wed Feb 27, 2008 2:16 pm
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| I am aware that any debt that is cancelled or forgiven over the amount of $600 must be reported as income , as of calender year. Can you negotiate with creditor that they not report the remaining to the IRS or are they obligated to report loss. Its so much information out here, much to be misleading.Read article that said you can [negotiate no form 1099-c]. Need your input. Thanks!!! |
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Ism
Joined: 13 Feb 2008
Ism's page
Posts: 44
2506 Magic Points
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Wed Feb 27, 2008 3:12 pm
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You might want to research the Mortgage Forgiveness Debt Relief Act of 2007. This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.
This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
It was passed earlier this month. This would eliminate having to negotiate again with the mortgage company as long as you are talking about your primary residence.
Good Luck! |
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billyg1227
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Subject: IRS and a 1099c
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Mon Mar 24, 2008 4:14 pm
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| do a little reading on the IRS Pu. 908 and form 982.. If you can show your insolvent you might be forgiven the debt |
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Fasfeed
Joined: 06 Feb 2008
Fasfeed's page
Posts: 87
3244 Magic Points
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Mon Mar 31, 2008 3:55 am
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| Will do .I have some charged off accounts that I want to negotiate,but need to be sure of 1099 issue. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Sun Apr 27, 2008 2:53 am
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| That is crazy that they can take the amount forgiven as an income. I believe they can do it but I just think its crazy. You try to help yourself out and still someone has to get a portion. |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3733
3 Magic Points
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Sun Apr 27, 2008 1:03 pm
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You will recieve a 1099 and it will be reported as income if it is over $600, you must file it as income, they file it as a loss.
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Mon Jul 28, 2008 3:39 pm
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| that explains some. |
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erb1953
Joined: 31 Dec 2007
erb1953's page
Posts: 621
-55 Magic Points
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Tue Jul 29, 2008 1:41 am
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| Does this only happen with the original creditor? I mean these collection agencies buy these old debts for pennies on the dollar and they are not the original one that is losing money on the debt so I don't think that they will be able to report it also right? The same debt can not be reported twice by the original creditor and the collector. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Tue Jul 29, 2008 12:20 pm
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| I can't understand that one ERB. You say the same debt can not be listed twice but I have two on my cr that list both the OC and the new debt collector. It says on the debt collectors listing who the OC is. On the OC report it list the debt was sold and transferred. That is what I was getting at on another post. It seems unfair that both can list. If I buy your repoed car from the bank for less than you owe how can both the bank and I list that on your report? Just an off the wall example. I just feel that once you buy something it becomes yours. This should be a factor in reporting debt. |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Wed Jul 30, 2008 4:02 am
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| Code: | | The same debt can not be reported twice by the original creditor and the collector. |
Not true.
The OC is entitled to report anything that happened up until the debt was sold, the CA reports activity thereafter.
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I don't dream since I quit sleeping |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Wed Jul 30, 2008 12:12 pm
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| Thanks for clarifying that Morningstar. Are they still looked at as one debt then? When the OC falls off due to SOL does the CA's listing fall off too? |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Wed Jul 30, 2008 6:35 pm
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| The reporting timeline for the OC and the CA is the same--essentially seven years from charge off date. |
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anthony
Joined: 31 Jul 2006
anthony's page
Posts: 550
13573 Magic Points
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Thu Jul 31, 2008 6:25 am
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I agree with morningstar on this point. Any listing, be it listed by the original creditor or the collection agency, will stay in your credit report for seven years from the date of your first missed payment. However hard inquiry listings will remain in your credit report for two years and bankruptcy listing may remain in your report for ten years.
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Anthony Marx
A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4121
1011 Magic Points
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Thu Jul 31, 2008 1:15 pm
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| On my OC there is no date listes as to when the debt will fall off. It just says closed at credit grantors request. The CA has the listing set to stay on until May 2010. So does that mean in May 2010 both listings will go off? |
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erb1953
Joined: 31 Dec 2007
erb1953's page
Posts: 621
-55 Magic Points
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Fri Aug 01, 2008 3:04 am
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| Don't the collection agency listing fall off when the original creditors report fall off. I would hope so, I mean, it could go way past the seven years if these fools can keep reporting the same debt that has fallen off. I would dispute the crap out of this situation. |
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