1099 Question
Date: Tue, 05/04/2010 - 07:37
Hey Debt Free to Be or anyone knowledgable about income tax, can you answer this please....
I posted it probably on the wrong place before but DFTB I am folloing your post regarding insolvency:
So I just was doing this on paper and thought of something that muddies the waters..
If you do each calculation on date of settlement I may be insolvent in the beginning but not with last settlement..
Example: My assets are real estate 306k and my 401k of 40,000 so total assets are 347k.
My liabilites are real estate 276k and credit card of 92k so I am insolvent by 21k.
So far so good but then I plan to settle my 2 Citi cards first clearing 36k from the liability column.
I will then have 2 more CC's so when I get to the next ones I will no longer have 92k in CC debt...CC debt will then be 92-36k leaving:rolleyes: 56k in credit card debt which changes me to solvency if I am doing this right???
Please advise and also you are saying we will have x number of these worksheets depending on how many settlements we have?
thanks,
Kaylee
I posted it probably on the wrong place before but DFTB I am folloing your post regarding insolvency:
So I just was doing this on paper and thought of something that muddies the waters..
If you do each calculation on date of settlement I may be insolvent in the beginning but not with last settlement..
Example: My assets are real estate 306k and my 401k of 40,000 so total assets are 347k.
My liabilites are real estate 276k and credit card of 92k so I am insolvent by 21k.
So far so good but then I plan to settle my 2 Citi cards first clearing 36k from the liability column.
I will then have 2 more CC's so when I get to the next ones I will no longer have 92k in CC debt...CC debt will then be 92-36k leaving:rolleyes: 56k in credit card debt which changes me to solvency if I am doing this right???
Please advise and also you are saying we will have x number of these worksheets depending on how many settlements we have?
thanks,
Kaylee
You'll have one worksheet for everything. I know this may not b
You'll have one worksheet for everything. I know this may not be what you want to hear, but I would recommend you get help from an experienced tax pro. From experience, I can tell you that doing the Insolvency Worksheet is hard.
Thanks OVLG, after reading everything on here I did call my tax
Thanks OVLG, after reading everything on here I did call my tax guy and I could tell he was not very knowledgable on it but at least he did admit that and say he would read up on it.
I have used him forever and don't want to change but also can't afford to go to another ourside source.
I still think it is best for me to settle no matter what about tax implications.
Kaylee