Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

2011/12 Income Tax - Joint 13 with two primary residences and Mortgage Forgiveness?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • 2011/12 Income Tax - Joint 13 with two primary residences and Mortgage Forgiveness?

    I beg everyone’s patience with my incessant questions. My 341 was extended 6 months – waiting is maddening. My situation in VA follows:
    Primary residence in N VA for 30 plus years for both of us is now only my primary residence.
    Spouse moved to our second home in Southern VA in Dec 2010, to take a better paying job. She changed her driver license address to the second home address – it became her primary.
    I stayed in the former joint primary address but was downsized into retirement in July 2011. Looked for work. Not working to date, little chance of finding work so far. I remain in the N VA house.
    Filed jointly for 13 in Oct 2011. Proposed 25% – Trustee is seeking 100% due to incomes and is demanding surrender of my “primary”, to increase DMI, of course. 341 continued to March 2012. Almost certain that we will end up with a 100% plan, and that is OK – I want to get on with my life!
    My primary residence is underwater – cannot do a strip of the second (held by a credit union) Will surrender that house in March 2012. Potential deficiency here of 125 – 150K
    Spouse's primary also has a first and second (both held by the same credit union that also holds the second on my primary residence – hoping they do not pull the cross-collateralization trick on us.) My attorney moved to strip the second (25K) on spouse’s primary. 25K would be the deficiency on this property, I guess. The marriage will stay intact and will I be moving to the spouse’s primary residence after the March 2012 continued 341/surrender of my “primary” residence.
    So, with that background and for income tax planning and surviving Chap 13 payment plan purposes, I’m trying to figure out if the Mortgage Forgiveness Act will apply to my primary, spouses primary, or both, and if we should plan on filing joint or separate file separate tax returns for 2011 and 2012.
    Previously have filed joint returns for many years. 2011 was a banner year for income but 2012 will show a large decrease in joint income. A few CPAs I’ve spoken with were not willing to touch this question with a ten foot pole, btw. Thanks for reading this; any advice, comments would be greatly appreciated.
    Stopped CC payments May 2010. Stopped mortgage payments Oct 2011. Filed 13 Oct 2011, Plan confirmed July 2012. Trustee required surrender of second home. Foreclosure sale completed May 2013. Now almost 2 yrs into the 5 yr plan payments

  • #2
    markinva, that's a complicated situation...are you first of all "ok" with giving up the house in N VA?? If yes, I believe that the mort forgiveness act is not relevant - if the mort is discharged in a BK (you surrender the house in N VA, etc.) it's not a taxable even in any respect anyway.

    Comment


    • #3
      Def. OK with the surrender - House is getting old - just had to shell out 700.00 today for heat pump repair. Prop will need re-roofing, windows, flooring, etc. soon. Even in NVA, close to DC, the real estate market just ain't that great. House has become a money pit. Great old movie, btw. ("The Money Pit") Thanks.
      Stopped CC payments May 2010. Stopped mortgage payments Oct 2011. Filed 13 Oct 2011, Plan confirmed July 2012. Trustee required surrender of second home. Foreclosure sale completed May 2013. Now almost 2 yrs into the 5 yr plan payments

      Comment


      • #4
        Originally posted by markinva View Post
        Def. OK with the surrender - House is getting old - just had to shell out 700.00 today for heat pump repair. Prop will need re-roofing, windows, flooring, etc. soon. Even in NVA, close to DC, the real estate market just ain't that great. House has become a money pit. Great old movie, btw. ("The Money Pit") Thanks.
        In that instance then good! And you do not have to worry about anything discharged through BK re taxes!!!

        Comment


        • #5
          Iam... Thanks - Just got TurboTax in the mail today - will just have to work thru the Joint/Separate scenarios wrt to the tax hits. Since the greedy trustee here will want any/all potential refunds, no real incentive to totally maximize my deductions for the next five years. Paying the trustee will beat paying the evil CC banks/companies any day!
          Stopped CC payments May 2010. Stopped mortgage payments Oct 2011. Filed 13 Oct 2011, Plan confirmed July 2012. Trustee required surrender of second home. Foreclosure sale completed May 2013. Now almost 2 yrs into the 5 yr plan payments

          Comment


          • #6
            On the other hand.. If I will be in a 100% 5 yr plan and the trustee will be taking my refunds, does that refund money goes into the pot that is paid out to the creditors? If there is a possibility that I could complete the plan payments sooner, then I guess I DO need to look at maximizing deductions, credits, etc. so the refund for 2011 will be as large as possible.
            Stopped CC payments May 2010. Stopped mortgage payments Oct 2011. Filed 13 Oct 2011, Plan confirmed July 2012. Trustee required surrender of second home. Foreclosure sale completed May 2013. Now almost 2 yrs into the 5 yr plan payments

            Comment


            • #7
              You should always strive to file a tax return that contains all of the deductions to which you are entitled. If you are concerned about refunds, then you should manage your withholding to approximate what your tax liability is expected to be. Seems to me that it makes absolutely no sense to give money to the Federal and state government to avoid giving it to the trustee. This is especially true in the instance where you are in a 100% plan, because if you overestimate your taxes and the trustee requires you to pay over the refund, it may very well shorten your plan.

              Comment

              Unconfigured Ad Widget

              Collapse
              Working...
              X