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March 20, 2006
IRS Codes you should know to be the expert
Paul,
I was at a meeting where you were speaking on foreclosures. Your information is outstanding. You mentioned a tax code that reduced or possibly eliminated the tax burden from the 1099 given to the prior homeowner when a home is sold short. . Would you mind letting me know what that code is, or how to find it? Thanks
Guys and Gals,
This type of information that I share with my students ON A REGULAR BASIS is the difference between every other foreclosure speaker in the country and myself who is a regular investor then trainer. And is'nt that what you want-a trainer. I am going to throw humility aside for a moment. Knowing this kind of information will be critical to your establishing your credibility with the homeowner. Even sharing this with them even though it may not apply to them establishes you as the expert. I actually heard a nationally recognized speaker tell an audience that the homeowner would just have to suck up the loss and pay the tax. This is not accurate and flat out wrong. The IRS tax code that you are talking about is 108A. The form that is used is IRS form #982. This is called "REDUCTION OF TAX ATTRIBUTES TO DISCHARGE OF INDEBTEDNESS" You should know this and use it to your advantage.
Paul
Posted by paulwells at March 20, 2006 8:34 PM