We live in Utah and have a pending short sale of our home for $225k. The mortgage balance is $320k, leaving a deficiency of $95k. The PMI is asking for a promissory note of $20k over 10 years or $10k upfront to erase the deficiency and allow the sale to go through. Are we liable for taxes on this $95k (or for possibly the amount we pay to the PMI)? And if the IRS considers this deficiency forgiveness as taxable income, would bankruptcy eliminate this liability?

September 8th, 2024

My daughter only needs a few credit hours to graduate from college. What will the tax consequences be for me if she becomes a part-time student?

January 9th, 2024

Three years ago, I had to sell my 30-year-old business due to economic hardship, resulting in a $200,000 debt from unpaid payroll taxes. I made an offer in compromise of $15,000, which was accepted by the IRS in 2012. I've been unemployed for 1.5 years but found work three months ago, enabling me to pay off 2012 personal taxes within 90 days. We owe $10,000 for 2012, have paid $6,500, and can pay the balance in 90 days. However, we cannot file Form 9465 due to the offer in compromise. Is there any way to prevent the reinstatement of the $200,000 debt, and what steps should I take to manage this situation?

May 11th, 2024

How is the government going to deal with individuals who receive 1099 forms from lenders for foreclosed properties, especially when the reported 'income' from such forms significantly increases their taxable income, and they lack the write-offs or funds to pay the resulting taxes?

October 15th, 2023

What is the payment schedule for worker's compensation cases prior to 2004, and how is the amount determined?

October 11th, 2024