Am wondering about liabilities and also the exemption for mortgage on a personal residence. Any relevant comments appreciated on either of the following:
1. TTB explains that the exemption must center around an "acquisition" mortgage. Does this mean that 2nd mortgages are absolutely not exempt, or does it mean that any mortgages are allowed but only to the extent that their principle does not exceed the acquisition price of the home?
2. Taxpayer during her marriage to an ex-husband signed numerous ill-advised joint loans with various lenders. This included everything from banks to unethical street corner finance companies. At the critical date of the 982 there was one loan for $100,000 jointly owed with her ex-husband. Her ex-husband was incarcerated as of this critical date. For purposes of the 982, should she list the liability as 100%, 50% or 0%.
The large loan referenced above was eventually relieved from the taxpayer by legal negotiation, but this was after the critical date. The finance company did not send her a 1099-A or 1099-C but decided to pursue ex-husband for collection. Does this mean she has to claim this forgiveness as income?
On 08/15/15 I am editing the original post to add a comment - I haven't been able to find anything in the IRS pubs that addresses the listing of a joint liability with a different party, or speaks to the situation if the parties are jointly and severally liable. If anyone has a link to some authoritative source that addresses this, please send it to me. Don't send a link to the IRS pubs -- already been there.
1. TTB explains that the exemption must center around an "acquisition" mortgage. Does this mean that 2nd mortgages are absolutely not exempt, or does it mean that any mortgages are allowed but only to the extent that their principle does not exceed the acquisition price of the home?
2. Taxpayer during her marriage to an ex-husband signed numerous ill-advised joint loans with various lenders. This included everything from banks to unethical street corner finance companies. At the critical date of the 982 there was one loan for $100,000 jointly owed with her ex-husband. Her ex-husband was incarcerated as of this critical date. For purposes of the 982, should she list the liability as 100%, 50% or 0%.
The large loan referenced above was eventually relieved from the taxpayer by legal negotiation, but this was after the critical date. The finance company did not send her a 1099-A or 1099-C but decided to pursue ex-husband for collection. Does this mean she has to claim this forgiveness as income?
On 08/15/15 I am editing the original post to add a comment - I haven't been able to find anything in the IRS pubs that addresses the listing of a joint liability with a different party, or speaks to the situation if the parties are jointly and severally liable. If anyone has a link to some authoritative source that addresses this, please send it to me. Don't send a link to the IRS pubs -- already been there.
Comment