Ask Experts Questions for FREE Help !
Ask
    viper2009's Avatar
    viper2009 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 20, 2009, 01:49 PM
    2008 1040X with IRS 982 for Deed in Lieu of Foreclosure
    We had a deed in lieu of foreclosure "DIL" done on our home in Michigan 2009 that we lived in for 7 years now we live in Vermont. I had to settle on the second mortgage so they would release the lien so we could go through with the DIL. We received a 1099-C cancellation of debt from the second mortgage holder Homecomings Financial a month ago way past when I filed our taxes. The settlement was done in Nov 20 2008, can I submit the IRS 982 form with a 1040X to amend our return. I have to do a 1040X since my wife's previous employer finally sent her a W-2 from Michigan. The 2nd mortgage was for home improvement i.e.. Driveway, furnace, boiler, deck, windows you name it not credit cards etc. I have read on the mortgage forgiveness debt relief act of 2007 and looks like we don't have to pay any taxes on a DIL like in the past. I also assume the Wells Fargo would send us a 1099-C by Feb 2010 for the DIL we had in Feb of this year and then I can submit another 982 with our 1040 long form then for the first mortgage. Any guidance is greatly appreciated, thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 20, 2009, 02:15 PM
    You need to get professional tax help from a local tax accountant who is thoroughly familiar with the provisions of how to porperly file Form 982. You are making assumptions about the mortgage debt that may NOT be true.
    viper2009's Avatar
    viper2009 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 22, 2009, 05:57 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    You need to get professional tax help from a local tax accountant who is thoroughly familiar with the provisions of how to porperly file Form 982. You are making assumptions about the mortgage debt that may NOT be true.
    From what I read in this bill it pretty clear on the second or the first as long as it's your primary residence, lived in it for over 2 of the last 5 years and the second is for house related debt not credit cards etc. I appreciate the help but why pay a lot for someone when I can read that plainly in the bill, it's just the right filling. I know how to fill out the 982 it only two blocks for our situation really easy I double checked with the IRS on the proper blocks to fill out just in case. I just wanted to know could I attach it to the 1040X since they sent the 1099-c too late for when I filed the 2008 taxes 1040 I forgot to ask them and didn't want to call back and wait again for so long. Not sure if the bank will send me another 1099 since the house was a VA back loan and Wells Fargo handed it over to them through the DIL process so they have no interest in the property at all and all the deed docs say it when to the VA not the bank. Thanks again for the help I might just go to a tax place like H&R block to save a few $$ to have them double check my work correct anything and let them file it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Apr 23, 2009, 10:22 AM
    Okay, if you are that confident, then you CAN submit Form 982 with Form 1040X.
    viper2009's Avatar
    viper2009 Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Apr 23, 2009, 03:32 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Okay, if you are that confident, then you CAN submit Form 982 with Form 1040X.
    Hi
    Please don't think I was being arrogant or anything like that I appreciated your advice but when I was reading the act that passed it's pretty clear on what you can and not do with taxes with a DIL or foreclosure. I feel confident I meet those requirements and will file accordingly but these tax laws etc are very daunting for anyone that's not a tax expert like yourself. I'm just a normal tax payer trying to get through this rough time and trying to make sure I do the right thing and pay what's due if needed. Thanks again for helping out on this forum!!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Apr 24, 2009, 10:17 AM
    No, I do not think you are arrogant. It appears you actually did the research and checked the facts before trying to prepare the return. A fair number of posters do not do that.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Deed in Lieu of Foreclosure [ 2 Answers ]

I have been trying to get my mortgage company to respond to my situation since August of 2008. It was made clear that due to our top heavy mortgage (at over 100K top heavy now) and other financial difficulties that we would be unable to pay by May of 2009. After over 40 phone calls and submitting...

Deed in lieu of foreclosure [ 1 Answers ]

I have 2 rental properties in Arizona that are vacant, and a undeveloped piece of commercial land. Can I do a deed in lieu of on all 3 of these properties, since none of them have sold in the last year, or is a foreclosure a better way to go?

Deed in lieu of foreclosure [ 1 Answers ]

We have purchased a home here in Louisiana approx 4 years ago. The home is only 6 years old and has flooded 4 times. These are not only floods with hurricanes but average Louisiana rains. We have drainage issues in the neighborhood that no-one will correct. We have hired attorneys to go after...

Is deed in lieu of foreclosure my only way out [ 1 Answers ]

I was going through nasty divorced when asked by friend if I could help out his house Was being foreclosed on.Agent for bank contacted me who I knew I told him I did not Want to do this. He invited me to restaurant where after few drinks I was handed papers To sign.I told him I did not want to...

View more questions Search