Comments on: Foreclosures, Debt Forgiveness and Mortgage Losses Explained

By: Myra Gardiner

Myra Gardiner — Sun, 08 Feb 2009 17:25:42 +0000

When a banker deducts a mortgage loan loss, do they get to deduct the principal plus interest due at the time of the loss or only the principal amount?

By: Are There Tax Consequences if You Surrender Your Home in Bankruptcy?

Are There Tax Consequences if You Surrender Your Home in Bankruptcy? — Fri, 02 Jan 2009 22:07:50 +0000

[...] tax treatment of debt forgiveness in a bankruptcy on Taxgirl's blog in a post entitled "Foreclosures, Debt Forgiveness and Mortgage Losses Explained." Click on the link to read this [...]

By: Kelly

Kelly — Sat, 18 Oct 2008 19:07:33 +0000

Rob, thanks for the comment. I did reference those exceptions (four paras from the end) but you can never mention them too often!

By: Rob

Rob — Sun, 12 Oct 2008 11:13:41 +0000

There are two important exceptions to the above: If your debt is discharged through bankruptcy, there is no taxable income to report. And, if you are declared financially insolvent, meaning that your debts exceed the FMV of your assets, you may exclude some or all of the forgiven debt from income.

By: eadn

eadn — Sun, 12 Oct 2008 03:26:33 +0000

I forgot about the exclusion! Thanks for clearing all that up! These days, it seems entitlement matters more than self-responsibility.

By: Foreclosures, Debt Forgiveness and Mortgage Losses Explained | Virginia Modular Homes

Sun, 12 Oct 2008 02:41:07 +0000

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By: Foreclosures, Debt Forgiveness and Mortgage Losses Explained : businessuu

Foreclosures, Debt Forgiveness and Mortgage Losses Explained : businessuu — Sun, 12 Oct 2008 00:11:11 +0000

[...] Original Kelly [...]

By: Foreclosures, Debt Forgiveness and Mortgage Losses Explained

Foreclosures, Debt Forgiveness and Mortgage Losses Explained — Sat, 11 Oct 2008 23:54:17 +0000

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