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Deed In Lieu

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fruggi Joined: 08 Dec 2010 Posts: 1 1.32 Dollars($)	Posted: Wed Dec 08, 2010 12:16 pm    Post subject: Deed In Lieu Like 0 Dislike 0 State of Florida, investment condo being approved for a DIL. Should be done before end of this year. If I owe $185k, and fair market value is 40k, then I have a tax liability for $146k to the IRS? If considered as ordinary income by the IRs, i would have to come up with $29.2k? this is insane. If I had that kind of money, I'd still be making payments on the condo. That being said, can I file the request for a settlement with the IRS on this debt, or do I need a lawyer to do it?
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Wed Dec 08, 2010 8:23 pm    Post subject: Like 0 Dislike 0 Hi fruggi, If the lender forgives the deficient balance resulting from the property sale, then you will be liable for paying the taxes for the forgiven debts to the IRS. You can always file a settlement with IRS and try to get a payment plan to pay off the taxes. _________________ Procrastination is the enemy of your financial success

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