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Ask the Patch Pro: Local Tax Experts Offer Advice

Our panel of experts are waiting in the comments to offer advice to help answer tax questions.

Welcome to Ask the Patch Pro, where each week we tackle a different topic and open up the comment section for questions. Our team of experts stop in to help you out and answer your questions.

It's time to file your taxes and Patch wants to help you find the answers to your questions, but we needed some help.

We've compiled a team of experts to help us out. Meet the experts:

  • Keith Slusser: CPA Fick, Eggemeyer and Williamson CPAs
  • Monica M. Gamblin: Principal Financial Advisor, EA MBA, AAMS
  • Sylvianne Doucot: Sylvia's Tax Service in High Ridge/24-years Tax Specialist for IRS/Private Practice for 7-years

 

Keith Slusser February 17, 2013 at 08:25 PM
Beverly - discharge of debt on your personal residence is excluded from taxable income. You should have no tax affect.
PaulRevere's Mom February 17, 2013 at 09:02 PM
Generally agree that your going to not have tax on this, one way or another. Do make sure you report it. And like all tax rules, there are nuances and exceptions -such as not all residence secured debt is considered qualified residence debt -such as when you refinance a home to payoff non-home debts or for non-home expenditures. From IRS website: "Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts? No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes." More info here: http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-
Beverly February 17, 2013 at 10:18 PM
Thank you all for your responses. This for is a 1099a. I am definitely letting a professional deal with this. Just wanted an idea if it would make us pay more than we normally have to.
Rich Pope February 17, 2013 at 11:06 PM
Oh Paul, don't get nervous. I'm a real, flesh and blood person known in the community. A lot of things can get accomplished with a face to fact discussion. It's very difficult to gauge a person's body language or facial expressions through text. But I'm sure you know the. It's also difficult to understand that it's impossible to hide behind a screen name. With today's technology, finding the originator of a post is a fairly simple things to do. And once you've got a name, you can get and address etc...So my offer was genuine. Meeting at iHop, or Bob Evans to hear your point of view still stands. And please, since I didn't make myself clear the last time, my name is Rich not Richie.
PaulRevere's Mom February 17, 2013 at 11:50 PM
Again, no thanks. Try PaulRevere, mike k, etc etc, they may take you up on the offer.

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