tag:blogger.com,1999:blog-6747929661464411700.post14284038466315052..comments2023-03-23T07:14:38.482-04:00Comments on The Super Tax Genius: Cancelled Debt and InsolvencySuper Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.comBlogger212125tag:blogger.com,1999:blog-6747929661464411700.post-8101507826841301582018-10-04T12:25:31.563-04:002018-10-04T12:25:31.563-04:00If it is a 401k type plan, yes.If it is a 401k type plan, yes.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-5495690186372999482018-09-20T14:30:34.945-04:002018-09-20T14:30:34.945-04:00Would my retirement fund with my employer have to ...Would my retirement fund with my employer have to be counted as an asset? I have at least another year to go before retirement.FormerCaregiverhttps://www.blogger.com/profile/02384808146716781182noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-44076191524848852982018-07-03T09:47:20.224-04:002018-07-03T09:47:20.224-04:00If we received 2 1099c's regarding debt cancel...If we received 2 1099c's regarding debt cancelled in 2017 (1 in March, and 1 in September), do we complete 2 different worksheets/ 982's?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-37132196864745358922018-06-04T12:47:02.123-04:002018-06-04T12:47:02.123-04:00In order to get to the point you are at, the IRS h...In order to get to the point you are at, the IRS had to have sent several letters. You should find a good Enrolled Agent in your area if you want to dispute it at this time. Get your insolvency data prepared and provide it to him or her.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-13300189248081813802018-06-04T12:21:02.990-04:002018-06-04T12:21:02.990-04:00We were unaware of the law regarding forgiven debt...We were unaware of the law regarding forgiven debt being added to income. Received a letter from IRS that he owes $7K+ due to interest and fines. There has been a levy placed and his tax refunds are garnished. Is there any way to prove insolvency AFTER the IRS has taken 80% of the debt? In other words, is there any hope to get that money back because I know I can prove he was insolvent at the time of the debt discharge (car repo in 2015). I was hoping a form was available...Thank you for your time.Anonymoushttps://www.blogger.com/profile/05140198435834369822noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-4677564175159972622018-02-11T22:04:54.301-05:002018-02-11T22:04:54.301-05:00If the inheritance has passed into your name it is...If the inheritance has passed into your name it is an assetSuper Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-44776567403258997542018-02-05T11:07:54.143-05:002018-02-05T11:07:54.143-05:00I received an inheritance from my mother passing l...I received an inheritance from my mother passing last year, and a debt of mine was cancelled a few months later. Do I need to include the inheritance as assets when determining solvency? Any help would be greatly appreciated. Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-83619495273601913462018-01-25T17:33:32.147-05:002018-01-25T17:33:32.147-05:00Yes, the cash value of the accounts is considered ...Yes, the cash value of the accounts is considered an asset. This used to be a bit of a question but has been clarified recently. Sorry.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-37740481775845908512018-01-21T08:39:45.320-05:002018-01-21T08:39:45.320-05:00Sorry if this question has been asked. I'm tr...Sorry if this question has been asked. I'm trying to calculate my assets and liabilities for a debt cancellation, and I see that 401K's and pensions are considered an asset. Are they still considered an asset when I am too young to start collecting from them?Joehttps://www.blogger.com/profile/00161238269813325941noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-82180403944700127902017-10-13T21:02:09.598-04:002017-10-13T21:02:09.598-04:00You would need to figure the fair market value of ...You would need to figure the fair market value of the entire company if you were to sell it. It might just be inventory, but it might be more. A professional is probably required.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-78114852614289489112017-10-13T21:00:28.788-04:002017-10-13T21:00:28.788-04:00Doesn't matterDoesn't matterSuper Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-26662354526542441652017-10-12T15:55:45.445-04:002017-10-12T15:55:45.445-04:00What about assets, ie: house, in a foreign country...What about assets, ie: house, in a foreign countryAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-23466429509693107872017-08-12T23:40:20.302-04:002017-08-12T23:40:20.302-04:00Hi - Thanks so much for your blog and for taking ...Hi - Thanks so much for your blog and for taking the time to answer everyone's questions, it's really helpful. I've read through all the comments and didn't see anything on how business ownership should be valued for the purpose of determining personal insolvency. For example, my personal assets are probably less than $15k, but I am the sole owner of an S-Corp that rents sound equipment, and my inventory is probably worth $75k if I were to sell it all today. Do I need to factor my s-corp ownership into my list of assets, and if so how do I determine the value of the company - would it just be the value of my inventory?<br /><br />Thanks for your help!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-19456094492305286542017-08-12T22:26:00.974-04:002017-08-12T22:26:00.974-04:00Assuming you are not in a community property state...Assuming you are not in a community property state that is correct. Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-58921869288167368842017-08-12T21:04:42.881-04:002017-08-12T21:04:42.881-04:00 Thanks for the reply. So I want make sure I under... Thanks for the reply. So I want make sure I understand so even if I am married but the credit cards are in my name and I went to debt relief IRS would not expect me to prove solvency by including half of my spouses assets and liabilities just my information only? Colleen Bain, M.A.https://www.blogger.com/profile/13359658546203570378noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-70645512343501285542017-07-31T20:32:06.068-04:002017-07-31T20:32:06.068-04:00You only include debt and assets in your name rega...You only include debt and assets in your name regardless of marital status. The car loans are a liability but the car value is an asset.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-62899851963244828912017-07-31T19:26:06.492-04:002017-07-31T19:26:06.492-04:00If I just got divorced and will be going through d...If I just got divorced and will be going through debt relief for Credit Card debt in my name, will IRS still require me to use my ex spouse's info. to prove insolvency at time of taxes? Also, if I have car loans, they are strictly considered liabilities and won't fall into assets, correct?Colleen Bain, M.A.https://www.blogger.com/profile/13359658546203570378noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-34639438224183200502017-05-09T14:07:49.777-04:002017-05-09T14:07:49.777-04:00The $32,000 in cancelled student loan debt counts ...The $32,000 in cancelled student loan debt counts as a liability, and your disability is ignored, so unless you have a lot of money in the bank and/or some valuable stuff, the vast majority can be excluded with an insolvency worksheet and the form 982. If you haven't already filed, prepare a tax return, including the 982 and see if there is any tax liability. You may want a pros help with the return, but you can give it a shot on software. Chances are that you will owe no taxes, even if you can't exclude all the cancelled debt. Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-75302605062437424012017-05-04T18:27:26.864-04:002017-05-04T18:27:26.864-04:00I am on Social Security Disability and had a Stude...I am on Social Security Disability and had a Student Loan Forgiven in the amount of $32,000. I didn't even have to file taxes because of this. Then I get this 1099 C form and I'm told I need to prove I'm Insolvent. My student Loan was forgiven in 2013 and now it's 2017. How do I do this?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-4467255980455439182017-04-19T17:15:23.560-04:002017-04-19T17:15:23.560-04:00Your comment and my response are getting lost belo...Your comment and my response are getting lost below the "Load More" button since there are a TON of comments. I'm going to purge some non-informative comments to help.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-47711469764940967032017-04-18T11:43:42.743-04:002017-04-18T11:43:42.743-04:00Posting Question a second time since prior post di...Posting Question a second time since prior post did not seem to publish. Would it be appropriate based on Schieber v. Commissioner, T.C. Memo 2017-32, to update the statement "Now the Kicker. If you are receiving a pension such as military retirement, state or federal retirement .... you must figure out the value of your payment as a lump sum on your life expectancy."? The Schieber opinion held that monthly payments from a state retirement pension plan(CALPERS)that could not be converted to a lump-sum cash amount; could not be sold, could not be assigned and could not be borrowed against was not an asset as for purposes of calculating the amount a taxpayer was insolvent under section 108(a)(1)(B), relying on the test set forth in Carlson v. Commissioner, 116 T.C. 87 (2001).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-79390269882133096352017-04-17T23:34:06.975-04:002017-04-17T23:34:06.975-04:00ok so to be clear:
only one spouse received the c...ok so to be clear:<br /><br />only one spouse received the cod income and needs to demonstrate insolvency on form 982....<br /><br />enter 1/2 of the FMV of the jointly owned home as asset and 1/2 of the outstanding mortgage balance as liability. even in florida?<br /><br />thx..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-59157277091972784192017-04-17T18:33:16.739-04:002017-04-17T18:33:16.739-04:00Almost certainly...and thanks for the reminder. F...Almost certainly...and thanks for the reminder. For obvious reasons this was a low priority this time of year for me. Scheduled top of the list for 4/19/17Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-21290944068217308622017-04-17T13:50:37.688-04:002017-04-17T13:50:37.688-04:00Would it be appropriate based on Schieber v. Commi...Would it be appropriate based on Schieber v. Commissioner, T.C. Memo 2017-32, to update the statement "Now the Kicker. If you are receiving a pension such as military retirement, state or federal retirement .... you must figure out the value of your payment as a lump sum on your life expectancy."? The Schieber opinion held that monthly payments from a state retirement pension plan(CALPERS)that could not be converted to a lump-sum cash amount; could not be sold, could not be assigned and could not be borrowed against was not an asset as for purposes of calculating the amount a taxpayer was insolvent under section 108(a)(1)(B), relying on the test set forth in Carlson v. Commissioner, 116 T.C. 87 (2001).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-20530355258202783402017-04-14T20:47:31.821-04:002017-04-14T20:47:31.821-04:00I have no good reason for that, except to say that...I have no good reason for that, except to say that it is a clearly stated, unambiguous rule. One might guess is that since, while alive, there is another person to help pay the loan that it only has half the effect on one person's ability to pay. But that's just conjecture on my part.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.com